Friday, May 22, 2020
Marketing Communication Ethics - 5188 Words
ETHICS IN MARKETING COMMUNICATION As well as the entire business world, marketing has its own ethics problems. Numerous marketing specialists or their representatives have consciously declared and adopted different engagements, declarations or codes of rules regarding the necessity that marketing people consider ethics regulations and values, so that they become much more responsible towards the members of society. These declarations or rules concern marketing practices in their ensemble or are guided towards certain specific fields. Among these fields, a special place is occupied by marketing communication, which has to be guided by ethical regulations and moral values. Key words: ethics, regulation, marketing, communication,â⬠¦show more contentâ⬠¦Although not all companies can assume social responsibilities, there are numerous fields in which organisations are approaching the way in which they understand and get involved in this kind of activities (for example, Kraft Foods company, with the program ââ¬Å"Together for childrenâ⬠, having as an objective improving treatment and hospitalising conditions for children in Romania, ProcterGamble company with the program ââ¬Å"Live, Learn and Develop yourselfâ⬠, having as goal helping children in need for support, JTI Romania, Vodafone etc., companies that either initiate or support different activities and programs of social responsibility). Of course that the decision for organisations to get involved in different activities of social responsibility belongs firstly to the managers of these organisations, respectively to those that choose the way and modality of action, starting with th eir own conscious, because, in fact, ââ¬Å"â⬠¦the only guiding direction for a straight, correct conduct is the irrefutably strong common sense or moral common sense feeling and our power to action on its basis as an initiativeâ⬠(Ionescu, 2006). As the entire business world, marketing reveals its own ethics problems. In conditions of high business velocity, in the context of a continuouslyShow MoreRelatedEthics in Marketing Communication1082 Words à |à 5 PagesEthical Challenges in Marketing Communication Ethics play an integral role in the development and sustenance of any personal or business relationship. Ethics determine the acceptable behaviors within a society and the overall behaviors of a business. Marketers must understand the impact ethics have on marketing communications and develop Integrated Marketing Communication (IMC) strategies accordingly. This paper will discuss various ethical challenges facing marketers today, identify internalRead MoreMarketing Communication Objective2641 Words à |à 11 PagesMarketing communication objective Planning is everything when it comes to measuring your success. If you fail to plan, itââ¬â¢s like a sailboat in the middle of the ocean without sails; you have no clue in which direction you will be sailing. This is why developing aà marketing communication objectiveà is paramount to your marketing success. What isà marketing communicationsà without having an objective? After all, an objective is the goal intended to be attained, which should be attainable and can be measuredRead MoreWhat are Marketing Ethics?1545 Words à |à 7 PagesDefinition of Marketing Ethics Marketing Ethics are the basic principles and values that govern the business practices of those engaged in promoting products or services to consumers. These are a set of criterion by which moral principles are considered within the marketing profession and execution of an advertising campaign for a business and/or organization. Marketing Ethics in Global Marketing Practice In recent years, owing to the internationalization of markets, businesses and production processesRead MoreEssay on Codes of Practice1513 Words à |à 7 PagesEthics and values apply to our personal and professional lives. Ethics are a notion of oneââ¬â¢s actions, which originates from ideology of an individual doing what is right not wrong. According to the dictionary ethics is the ââ¬Å"branch of philosophy dealing with values relating to human conduct, with respect to the rightness and wrongness of certain actions and to the goodness and badness of the motives and ends of such actions.â⬠These beliefs are amassed to help a person determine how their actions willRead MoreEthical Issues With Ethical Marketing Essay1333 Words à |à 6 PagesIssues with Ethical Marketing Ethical problems in marketing starts with conflicts and disagreements. Each party in the marketing transaction brings expectations of how the business relationship will exist and how the transaction should be conducted. Some ethical problems in marketing research arenââ¬â¢t always the invasion of privacy and stereotyping. Selective marketing is used to discourage the demand from undesirable markets or just by disenfranchising them altogether. Examples of unethical marketRead MoreEthical Issues for Advertising Tobacco Products Across1129 Words à |à 5 PagesDetermines the suitable marketing practices * Allows for theory of norms and values SCT captures two different types of social contracts- hypothetical and actual contracts used in living communities. It is the foundation of rules within communities with two assumptions: * Individuals join the contract that means individuals realize and care about morals and values of these components. * It can be assumed that global members would have responsibilities with ethics, through the recognitionRead MoreIs Marketing Ethical And Ethical?1158 Words à |à 5 PagesIs Marketing Ethical? The purpose of this paper is to discuss whether or not Marketing is ethical. The flow of this paper will present a brief discussion on the definition of marketing, a brief discussion on the definition of ethics, and overview of the marketing process, and finally a narrative that discusses my view on whether or not marketing is ethical. WHAT IS MARKETING? According to the Kotler text, marketing is the process by which companies create value for customers and build strong customerRead MoreThe Ethics Of Business Ethics1349 Words à |à 6 PagesBusiness ethics can be defined as the critical examination of how people and institutions should behave in the world of commerce. There are many subcategories that we may look into when speaking of business ethics, in this essay I will be writing about advertising ethics. Advertising is practically unavoidable in today s world, we see it in the streets, shops, magazines, television, on the internet, hear it on the radio. In this essay I will describe two ethical issues in advertising, show why businessRead MoreMarketing and Strategic Elements1031 Words à |à 5 Pagesengage in marketing efforts? While non-profit organizations differ from profit seeking firms in several ways, non-profit organizations need to engage in marketing efforts to generate financial revenue to support their causes. All businesses need marketing plans to generate revenue and measure results. In non-profit businesses, community service target levels and education service target levels can be used to measure results. Unlike profit seeking organizations that focus on marketing solely toRead MorePerformance Indicators For Evaluation System806 Words à |à 4 PagesEVALUATION SYSTEM Company establishes key performance indicators for evaluation system. The actual performance of marketing activities is comparing the set objectives. The key performance indicators are:- â⬠¢ Overall sales of products in all the countries of world. â⬠¢ Brand image â⬠¢ Product innovation and improved existing products. â⬠¢ Consumer feedback â⬠¢ Rate of growth and increasing market share. Company should follow following monitoring system:- *Responsibility control centres :- It is sub unit
Saturday, May 9, 2020
The Gap Between the Rich and the Poor in America Essay
The era of volatility has created a shift from America being the middle-class society to simply rich or poor (Sachs, 2011). A gap this large has not been experienced since the 1920ââ¬â¢s (Sachs). ââ¬Å"The top 1% of households takes almost a quarter of all household incomeâ⬠but an economy this top heavy will not be able to succeed (Sachs, 2011, p. 30). The working classes are struggling with housing, wage, and employment issues. Rich individuals are ignoring these troubles, shipping their business operations out of the country, thus furthering the downward spiral of the economy (Sachs). To make matters worse, this has become in a large part a political issue, because the rich can influence candidates with funding, where the poor and workingâ⬠¦show more contentâ⬠¦At that time though tax rates were 70% higher; presently the United States has the lowest tax rate of the leading economies (Sachs). The economy at that time was an effective mix of big business and activism in government, this combination worked to reduce the gap between rich and poor (Sachs). Then the 1970ââ¬â¢s hit and things began to fall apart in the face of new challenges. It was in the 1970ââ¬â¢s that globalization first hit with the introduction of Japanese cars to compete with the three major car dealers in America, inflation began to rise (Sachs). Rather than examining ways to become more competitive in the face of globalization, government looked inward and decided that is was the problem and not the solution to a problem (Sachs). The government failed to recognize the key role it played in correcting the economy before. Failure to recognize the Feds role in the economy and to adjust to globalization characterized the 80ââ¬â¢s (Sachs, 2011). The long-term effects have been a ââ¬Å"hollowing outâ⬠of American industries and the middle class have suffered the most, loosing employment as well as their homes (Sachs, p. 30). Manufacturing, textile, auto, and appare l jobs have all been lost to globalization, save for the highly skilled level positions (Sachs). For many years, construction filled the employment gap that manufacturing left in the American economy (Sachs). While it can be noted that Americans have benefited from low costShow MoreRelatedThe Context Of Growing Economic Interdependence1672 Words à |à 7 Pages(globalisation); inequality is both growing within and between nations. In turn, analysing the following the following statement that ââ¬Å"Inequality can undermine economic, social and perhaps even political stability. It can tear the very fabric that holds society together. We now have firm evidence that a severely skewed income distribution harms the pace and sustainability of growth over the longer term. The growing gap between the rich and poor is now at its highest levels due to wealth disparityRead MoreThe Inequality Gap Of The Rich And Poor1183 Words à |à 5 PagesSome people would argue that the inequality gap of the rich and the poor does not affect our democracy. Others say the inequality gap is weakening our democracy. Either way, there is a wealth gap between the rich and the poor in the United States and as this gap between the classes expands, there is a debate over what should be done. On one side, people believe that great inequality between the rich and the poor is incompatible with democracy. Democracy is defined by the Oxford English DictionaryRead MoreAmerica s Income And Wealth Inequality987 Words à |à 4 PagesToday in America, income and wealth inequality has continued to grow at an unsettling pace. The rich continue to get richer, while the number of people categorized as lower class grows exponentially. As Joseph Stiglitz has explained, many theories that are seen as strongly Republican, such as the trickle-down effect, has caused the rich to take money from the poor, and as a result the lower class grows and the middle class disintegrates. The top 1 percent of Americaââ¬â¢s households currently holds 30Read MorePersuasive Essay About American Dream950 Words à |à 4 Pagesincluded in this dream is really challenging. In short, being colored is one disadvantage you can encounter. Also, being a minority does not help the situation. In most cases ev en being a woman has its problems. This includes white woman too. Being poor is also a huge problem. This condition alone excludes most of the population. The American Dream goes to those who are privileged . When a common pet is given a home and food it is basically guaranteed a good life. Success is promised; even thoughRead MoreClass in America1189 Words à |à 5 PagesMantsios Class in America In Mantsios article ââ¬Å"Class in Americaâ⬠he states that Americans hold beliefs that blind them to social classes, citizens in America have four myths they use to ensure talk about the classes never take place. America has the largest gap between rich and poor in the world, and the lower class has no means to an end they canââ¬â¢t afford health care or quality education. The upper class avoids talk about social class the most; wealthy people donââ¬â¢t want to admit that they are betterRead MoreThe Rights Of Man By Thomas Paine1181 Words à |à 5 PagesAdditionally, the time gap between ââ¬Å"Rights of Manâ⬠and modern America cannot be neglected. Paine wrote during an era in which ââ¬Å"constructing a government on the principles of society and the rights of manâ⬠was the essential objective of the country. However, modern-day America experiences opposite ideals and Paineââ¬â¢s theory no longer remains true because of the educational gap between the ric h and poor, terrorism, and racial profiling. Paineââ¬â¢s theory does not correlate to modern-day America because of theRead MoreThe Movie Park Avenue : Money, Power And The American Dream858 Words à |à 4 Pagesdistinction between the two, there exist clear similarities in trying to analyze the true facts behind a dream. The documentary directed by Gibney, analyzes the true facts of the gap between the poor and the rich in the America dream. It shows that the gap has been increasing over the last thirty years. The Park Avenue that passes through Manhattan (where the rich stay) and South Bronx (where the poor stay) shows this distinction (Lee). The two are separated by a river making the gap appear smallerRead MoreThe American Dream Must Have Been A Dream After All Essay1678 Words à |à 7 PagesPark Avenue, on the Upper East Side of Manhattan, is one of the wealthiest neighborhoods in all of New York City, home to the ultra rich, the top tier of the American upper class, the 1% (Park Avenue). Those who reside in Park Avenue not only have vast amounts of wealth, but an immense amount of influence that has turned the tables in their favor. But, if you go a couple of miles North of Park Avenue and cross the Harlem river, you arrive at the other side of Park Avenue or otherwise known as theRead MoreImp act Of Globalization On The World Economy934 Words à |à 4 Pageseconomic. On the other side, researchers and experts are saying that, globalization helps in increasing gap between poor and rich people in all around the world. The impact of the globalization is so wide and board, it is difficult to solve, because every countries of the world are crying to develop their economy by globalization. As a result, the globalization increase the gap between rich and poor because of, improper wage system and insecurity of jobs, multinational companies, environment treatiesRead MoreRaising The Minimum Wage Is The Issue Of Social Equality1398 Words à |à 6 PagesGod, glory, and gold are the 3Gââ¬â¢s, and that is also the main reason why the Europeans originally came to America. Today, the 3Gââ¬â¢s still stand, but not everyone is able to achieve them and especially the immigrants. In the early colonial days, immigrants were called upon. Today they are frond upon, and are getting thre aten to be deported back to their origin country. In Framing Class, Vicarious Living, and Conspicuous Consumption, written by Diana Kendall, and in The Missing Class, written by Katherine
Wednesday, May 6, 2020
Company law ans Free Essays
string(25) " The exceptions under s\." Bristol is a substantial shareholder in Chester-Perry Industries Ltd. A business competitor, Gun and Fames Pity Ltd, is selling in great volume a cookbook similar to one in respect of which Chester-Perry Industries holds the copyright. Bristol believes his company has incurred a substantial loss and his own shares have been reduced In value by $150,000. We will write a custom essay sample on Company law ans or any similar topic only for you Order Now HIS solicitors believe an Infringement of copyright has occurred. Cycles and Pollock are the directors of Chester-Perry Industries Ltd. They state that they have decided not to litigate because they believe hat to take legal action for infringement of copyright is too expensive and risky. Bristol is unsure whether the directors of Chester-Perry Industries have any interest in Gun and Fames Pity Ltd. On the general principles laid down Salmonââ¬â¢s case, can Bristol sue Gun Fames? Issue: Can Bristol sue Gun Fames on behalf of Chester-Perry as a shareholder in Chester-Perry? Relevant law: Salomon. Application: The House of Lords in Salomon held that upon incorporation, a company beneficially becomes a separate legal entity even though its issued shares are owned by the same person Like In Salomon. Similarly In this question, Chester-Perry Is a company that has been incorporated and therefore, is a separate legal entity from all its shareholders. In this case, according to Salomon, Bristol who is a shareholder of Chester- Perry cannot sue Gun Fames on behalf of Chester-Perry as a company is separate from its shareholders. Conclusion: Bristol cannot sue Gun Fames on behalf of Chester Perry due to the principle laid down in Salomon where upon incorporation Chester Perry is considered as a separate legal entity from all its shareholders, including Tutorial 2 Bristol. Q(a). The Constitution of Big Hopes Pity. Ltd. Includes the following provisions: Rule XSL: On any Increase In capital the new shares must be offered to members In proportion to their excellent shares. John (an existing shareholder) is distressed when an allotment of a new issue is Issue: of What action can John take against Big Hopes for failing to allot new issue shares to him according to Rule xi of the Constitution? Relevant law: CA 2001. Application: s. 140(1)(a) states that a constitution of a company is a contract between the company and its company and its shareholders. In this essence, both the shareholders are bind by the constitution. Must Big In this instance, Rule xi of Big Hopesââ¬â¢ constitution states that new shares be offered to existing shareholders as per their existing shares. However, Hopes failed to allot new shares to John as according to his existing shares and have therefore breached its contractual obligation in the constitution under Conclusion: John can take an action against Big Hope under s. 140(1)(a) for breaching its to contractual obligation in its constitution for failing to allot the new shares John as per his existing shares. Tutorial 3 Q. John, Ring, George and Paul incorporate Big Hopes Pity Ltd for their property development business. Big Hopes Pity Ltd was empowered under a provision in its constitution to appoint a managing director. However, the company did not appoint managing director, executed a contract with Vincent for the purchase of a certain property. The market price for the property subsequently collapsed. The board of Big Hopes Pity Ltd, learning of the contract, expressed their disapproval to Paul and claimed that the company was not bound by the contract. Vincent seeks your advice as to his legal position. Issue: Is the company bound by the contract with Vincent? Relevant law: Constructive notice, Turned, and s. 129(2)(a) and (b), s. 29(5) (6) CA 2001 , Actual authority and Apparent authority. Application: Under the old principle of constructive notice, the constitution of public companies are made available for public inspection and therefore, the public are deemed well aware of the limitations on the authority of the companiesââ¬â¢ principle will not apply here as Big Hopes is a private officers. This old company. Furthermore, under the common law Turnaroundââ¬â¢s case, any outsiders with companies can assume that the persons with whom they are with have the authority to contract on behalf of the companies and all proceedings have been complied with. Dealing internal In this case, the constitution of Big Hopes states that a MD should be appointed but did not state that Paul has been properly appointed as the MD. Vincent can argue that he assume that Paul has been appointed as the as per the Turnaroundââ¬â¢s case and therefore, has the authority to contract on behalf of the company. He also has no actual knowledge or suspicion that Vincent has not been properly appointed (Note: In test/exam, if there are any circumstances that arouse suspicion, argue using the case of Nonresident Developments). The principle of constructive notice has also been abolished by s. 130(1) of CA 2001. In dealing with companies, outsiders are entitled to make certain assumptions contained in s. 129 of ACACIA as per s. 128(1) of ACACIA. In this instance, Vincent can argue that he has been empowered by s. 128(1) to make certain s. 129 assumptions when contracting with Paul from Big Hopes. Reticular, he can assume under and (b) that Paul has been properly appointed as the MD of Big Hopes and can therefore exercise all the customary duties of a MD which include entering into contracts on behalf of Hopes. In this essence, Vincent can assume that Paul has actual implied authority to enter into contracts on behalf of Big Hopes. Note: In test/exam, if question requires arguing on apparent/oste nsible authority, use the case of Freeman Locker to support your argument). Vincent can also argue either s. 129(5) or (6) depending on whether Big Hopes execute contracts by way of seal or without seal. Either way, Vincent can argue that Paul has complied with all the internal proceedings when executing the contract with/without seal (e. G. Proper meeting, quorum, fixation of seal, witnessing of fixation et cetera) under either of these two sections. The exceptions under s. You read "Company law ans" in category "Law" 128(4) CA 2001 will not apply to Vincent as he has ever known or suspected that Paul has not been properly appointed and the contract has not been properly executed. Conclusion:Big Hopes is bound by the contract with Vincent under both common law (as per Turnaroundââ¬â¢s case whereby entitled to make certain s. 29 assumptions again, there is no evidence suggesting any when dealing with Big Hopes and exceptions under s. 128(4) that will rebut the s. 129 assumptions made by Vincent. Tutorial 4 Q. Maria is keen to purchase shares in Action Ltd. , but is unable to raise sufficient funds to do so. It is suggested that the company lend Maria the sum of $50,000 to enable h er to complete the purchase. The directors of Action Ltd. Seek your advice as to this proposal. Issue: Can Action Ltd lend Maria the sum of $50,000? Is this considered as financial assistance? Relevant law: s. AAA(1) CA 2001, ASIA v Adler. Application: Under s. AAA(1), a company may only financially assist a person if it (a) does not materially prejudice the interests of its shareholders and affect its ability to pay its creditors, (b) must be approved by all shareholders, and (c) exempted by s. CHIC. Therefore, before Action Ltd lends the $50,000 to Maria, it must ensure that it has comply with all the requirements in s. AAA(1). Otherwise, Action Ltd will be breaching s. AAA(1) as per the case of ASIA v Adler. In ASIA v Adler, Mr.. Adler the director in HI has utilized the money of HI to financially assist his personal company PEE to purchase the shares in HI when HI was already in financial difficulty and without the approval of the shareholders. The court deemed this to be a contravention of s. AAA(1). Requirements in s. AAA(1). Conclusion:Action Ltd can only financially assist Maria to purchase the shares of Action Ltd if it satisfied all the requirements in s. AAA(1). Otherwise, Action Ltd will be deemed to have contravened s. AAA(1) as per the case of ASIA v Adler. Tutorial 5 Q. An opportunity has arisen to purchase land for development at Christmas Hills. The shareholders of Central Developments Ltd. Passed a resolution that the company purchases the land. However, the directors have ignored the resolution and refuse to act on it. Are the directors bound to implement the shareholdersââ¬â¢ resolution? Issue: Are the directors of Central Developments bound by the shareholdersââ¬â¢ resolution to purchase the land at Christmas Hills? Relevant law: Separation of ownership and management powers, Automatic Self- Cleansing, John Shaw. Application: Under the principle of separation of ownership and management powers, the management of the company is vested fully in the board of directors despite the shareholders owning the company. Therefore, the shareholders cannot pass resolutions instructing the directors on how to manage the company. According to the cases of Automatic Self-cleansing and John Shaw, the directors as long as acting within the management powers bequeathed on them by the companyââ¬â¢s constitution have absolute power in managing the company and the shareholders have no rights to interfere in this as per the companyââ¬â¢s constitution. In this event, the directors of Central Developments can ignore the resolution of the shareholders to purchase the land at Christmas Hills because purchasing of land can be considered as a type of management power and only the Conclusion: The directors of Central Developments can ignore the resolution of the shareholders to purchase the land at Christmas Hills because the directors have absolute power to manage the company including whether to purchase the land as per the principle of separation of ownership and management powers and the cases of Automatic Self-cleansing and John Shaw. Tutorial 6 IQ. Seven Dwarves Ltd operates nursing homes. Its directors are Sleepy, Grumpy and Dopey. They hold 30% of the shares in the company. The directors allocate 1 million new shares to certain business associates. This has upset certain shareholders who claim that the placement was made with a view to preventing a future takeover offer being made. The directors claim that the allotment was made to raise cash required for the companyââ¬â¢s future needs. Advise the shareholders. Issue: Advise the shareholders whether the directors have breached any of their directorââ¬â¢s duties by allocating 1 million new shares to certain business associates? Relevant law: s. 181 CA 2001 ââ¬Å"proper purposeâ⬠(but for test), Whitehorse v Carlton, Howard Smith. Application: Under s. 181 CA 2001, directors must act in good faith, in the best interest of the shareholders and for a proper purpose. The shareholders in claimed that the directors have issued 1 million new shares to Seven Dwarves certain business associates to defeat a takeover and therefore, the issuing of these new shares is for an improper purpose. To determine whether the issuing of new shares is for an improper purpose (I. E. To defeat a takeover), the but for test will be applied. But for to defeat a future takeover, will the directors issue the 1 million new shares? â⬠(Note: Students must reason and argue on this question to reach an answer, either Yes/No). If the but for test reveals that no, if not to defeat a takeover, the directors will not issue the new shares, then obviously the reason for issuing shares is to defeat a takeover. He to prevent the wife from having majority control over the business and in the case of Howard Smith, whereby new shares were issued to prevent future takeover, the court ruled that the issuing of new shares in these cases was for improper purpose. Therefore, the directors have breached s. 181 because their purpose in issuing the 1 million new shares to certain business associates is to defeat a future takeover which is considered as improper as per the two cases discussed above. Conclu sion: The directors of Seven Dwarves have breached s. 81 because they have issued cases new shares for an improper purpose (I. E. To defeat a takeover) as per the of Whitehorse v Carlton and Howard Smith. Tutorial 7 (This question is not taken out from the tutorial questions but you can still use it as a reference for answering questions from this tutorial) Sam and Pete are the erectors in BBC Pity Ltd. They have decided to use the 1 million dollars in the companyââ¬â¢s bank account to invest in the shares of DEAF Ltd after doing all the necessary research and making all the necessary inquiries by themselves from the Internet and financial Journals and magazines. Six months after the investment, the World Financial Crisis occurs and DEAF Ltd goes into liquidation causing BBC Pity Ltd to lose its 1 million dollars investment. Do the shareholders of BBC Pity Ltd have a course of action against Sam and Pete? Issue: Do the shareholders of BBC have a course of action against Sam and Pete for asking an investment that caused the company to lose 1 million dollars? Relevant law: Old subjective common law standard, Re Cardiff Bank, Re City Equitable Fire Insurance, Daniels v Anderson (objective standard), s. 80(1) and s. 180(2) CA 2001. Application: Under the old common law, a subjective standard is applied to directors when exercising their duty of care towards their companies. In both the case of Re Cardiff Bank and Re City Equitable Fire Insurance, the subjective standard is applied whereby directors were only required to exercise duty of care as per their personal level f skill and experience. However, this approach has been overruled by the moder n objective standard landmarks in the case of Daniels v Anderson. In this case, all directors are expected to exercise a duty of care that any other reasonable directors will apply in the same position and circumstance and not according to their personal level of skill and experience. This standard is further illustrated in 180(1) CA 2001 which states that directors must exercise their power with degree of care that any reasonable directors would exercise in the same circumstances, position and responsibilities. In this event, if the shareholders of BBC are able to establish that any other Sam and Pete would be breaching their duty of care towards BBC under 180(1). However, Sam and Pete will be able to raise the Business Judgment Rule Defense (BBC) in s. 180(2) CA 2001. In order for them to raise the BBC, they must satisfy four elements; (1) They have made the business Judgment in good faith and for a proper purpose ââ¬â there is no evidence that Sam and Pete have ill intentions when making the investment, (2) They have no material personal interest in the business Judgment ââ¬â again, there is no evidence that Sam and Pete have gained any benefits financial or non-financial wise from the investment, (3) They have informed themselves of the subject matter of the business Judgment ââ¬â there is evidence that Sam and Pete have done all the necessary research including online and from Journals and magazines, and (4) Any other reasonable person in the same position and circumstances would have made the same investment as they did after doing all the research ââ¬â Sam and Pete must be able to prove so. If Sam and Pete are able to establish all the elements in s. 180(2), then they will be able to use the BBC to defend themselves from breaching s. 0(1). Conclusion: The shareholders of BBC will have a course of action against Sam and Pete if they can prove that no reasonable director will invest the 1 million dollars in DEAF and therefore, in doing so, Sam and Pete have breached their duty of care to the company under s. 180(1). However, if Sam and Pete can establish all the elements under s. 180(2 ), then they will be able to use the BBC to defend themselves from breaching s. 180(1). Tutorial 8 (These questions are not taken out from the tutorial questions but you can a shareholder in EX. Pity Ltd. How to cite Company law ans, Essays
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