Principal-agent problem is a particular game-theoretic description of a situation. There is a player called a principal‚ and one or more other players called agents with utility functions that are in some sense different from the principal’s. The principal can act more effectively through the agents than directly‚ and must construct incentive schemes to get them to behave at least partly according to the principal’s interests. The principal-agent problem is that of designing
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dimensions of the shareholder-principal conflict with manager-agents known as the principal-agent problem. To mitigate agency problems between senior executives and shareholders‚ should the compensation committee of the board devote more to executive salary and bonus (cash compensation) or more to long-term incentives? Why? What role does each type of pay play in motivating managers? There are several dimensions to the principal-agent conflict. Principal-Agent Relationships exist whenever
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DUTIES OF DIRECTORS Directors of a company normally have exclusive power to manage the company’s business and exercise its powers. At common law‚ the duties were owed to the company‚ to employees‚ to individual shareholders and creditors. 1.0 Duties of Directors to the company It is convenient to categorise the duties of directors into fiduciary duties which arise because they are quasi-trustees of the assets of the company. The word ‘fiduciary’ refers to trust and confidence. ‘A fiduciary is
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Duty of Care: GELERAL Week 2::Seminar 2 This concept is based on three proof of elements‚ its ingredients are – A legal Duty of D towards the C to exercise care in such conduct of D as falls within the scope of the duty‚ Breach of that Duty means failure to come up to the standard required by law & Consequential damage to C which can be attributed to D’s conduct. Duty of Care General: Duty is the primary control device which allows the courts to keep liability for negligence within what
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Duty of Care Duty of care refers to the obligations and responsibilities that people in authority have for those in their charge. Whether a duty of care is owed depends in part on the position of the person in authority‚ particularly his or her status as an expert with superior knowledge. Proof that a duty of care has been breached generally leads to a court awarding damages to the injured party to compensate for financial loss. Duty of care in child care Obviously people who work in child
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❖ S 9: “Officer” includes directors‚ secretaries‚ receivers‚ administrators‚ liquidators‚ administrating trustees. ❖ S 9: “Director” includes shadow & de facto directors. enforcement of directors’ duties enforcement of statutory duties Civil penalties Who may apply for a Declaration or Order? ❖ S 1317J(1): ASIC may apply for a declaration of contravention‚ a pecuniary penalty order or a compensation order. ❖ S 1317J(2): The company may apply for a compensation order. ❖
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The Custom Duty in India is one of the most important tariffs. The custom duty in India is regulated by the Customs Act of 1962. The main purpose of the custom duty in India is the prevention of the illegal export and import of goods. The rates of the custom duty levied on the imported and exported goods are assigned in the Custom Act‚ 1962. The Acts under the custom duty in India: * Foreign Trade (Exemption from application of Rules in certain cases) Order‚ 1993 * Customs Act‚ 1962
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Duty of care and mandatory reporting are two areas in child protection and juvenile justice that must be considered when working with young people as they could be your legal obligation. What is duty of care? Who do you owe duty of care too? What is mandatory reporting? When should you report a situation? Duty of care is giving reasonable care to individuals you work with‚ co-workers‚ and the general public to protect them from risks of harm that could happen. The measure of reasonable care depends
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Duty of Care 1.1 The term duty of care refers to the duties and responsibilities that someone in charge and authority has to those they are caring for. In the area of childcare and early years‚ teachers‚ nursery workers and other care workers have a duty of care to the children they are looking after and are responsible for. There is a general definition for duty of care as well as different definitions in greater detail. For example moral and legal duties of care. Legal duty of care is where
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In tort law‚ a duty of care is a legal obligation which is imposed on an individual requiring adherence to a standard of reasonable care while performing any acts that could foreseeably harm others. It is the first element that must be established to proceed with an action in negligence. The claimant must be able to show a duty of care imposed by law which the defendant has breached. In turn‚ breaching a duty may subject an individual to liability. The duty of care may be imposed by operation of
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