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Introduction:
This essay is consisted of Part A and Part B, includes three tasks in total. In Part A it will discuss the feature of a fiduciary relationship and disclosure some duties owned by company directors, such as the duty to act in good faith in the best interests of the company, the duty to avoid conflicts of the interest, the consequences of breaching a duty by directors and some defences for the company’s director. After that, in Part B the article will talk about some issues arise from the duties owned by partners in a partnership. In the following parts this essay will discuss and analyse all the issues above in details.
Part A: task 1:
According to the fact situation, Simone is a managing director of the Youth Unlimited Pty. Ltd which is a profitable company carry on selling anti-aging products for business. The company is a proprietary company limited by shares and the managing director is also known as a chief executive officer (CEO) of the company. Also, it can be seen in this way, Youth Unlimited gives Simone a particular opportunity to in charge of the day-to-day management of the company, to exercise the power or discretion to the damage of that person, who is accordingly vulnerable to abuse by Simone of her position — the fiduciary relationship. However, CEO of the company will also be in a fiduciary relationship. As a result, Simone can be regarded as fiduciary. The critical feature of a fiduciary relationship is that the fiduciary on behalf of another person in the exercise of a power which will influence the interest of that other person in a legal sense. Meanwhile, fiduciaries cannot use their knowledge or position to benefit themselves rather than the person on whose behalf the fiduciary is required to act. (Butt, 2004, p173).See also case: Hospital Products Ltd v United States Surgical Corp (1984) 156 CLR 41; 55 ALR 417.
Moreover, because of the personally interested in marketing of ‘Be Blonde’ , a product which is supposed to
This essay is consisted of Part A and Part B, includes three tasks in total. In Part A it will discuss the feature of a fiduciary relationship and disclosure some duties owned by company directors, such as the duty to act in good faith in the best interests of the company, the duty to avoid conflicts of the interest, the consequences of breaching a duty by directors and some defences for the company’s director. After that, in Part B the article will talk about some issues arise from the duties owned by partners in a partnership. In the following parts this essay will discuss and analyse all the issues above in details.
Part A: task 1:
According to the fact situation, Simone is a managing director of the Youth Unlimited Pty. Ltd which is a profitable company carry on selling anti-aging products for business. The company is a proprietary company limited by shares and the managing director is also known as a chief executive officer (CEO) of the company. Also, it can be seen in this way, Youth Unlimited gives Simone a particular opportunity to in charge of the day-to-day management of the company, to exercise the power or discretion to the damage of that person, who is accordingly vulnerable to abuse by Simone of her position — the fiduciary relationship. However, CEO of the company will also be in a fiduciary relationship. As a result, Simone can be regarded as fiduciary. The critical feature of a fiduciary relationship is that the fiduciary on behalf of another person in the exercise of a power which will influence the interest of that other person in a legal sense. Meanwhile, fiduciaries cannot use their knowledge or position to benefit themselves rather than the person on whose behalf the fiduciary is required to act. (Butt, 2004, p173).See also case: Hospital Products Ltd v United States Surgical Corp (1984) 156 CLR 41; 55 ALR 417.
Moreover, because of the personally interested in marketing of ‘Be Blonde’ , a product which is supposed to