Legal Issues



Legal Issues

Question 1

Here in the case of HydroPower Limited, the members have the right to withdraw amount form their company only after showing some genuine reasons that would justify that the amount withdrawal is in the interest of the company. According to the section 247A (1), (2), (3), (4), (5) and (6) of the corporate act 2001, if any one member of the company or of an investment scheme that is registered send's an application for the inspection of the books of the company, the court may authorise the applicant who submitted the application to inspect the books or can authorize another person to do the same on the behalf of the applicant. The court will only allow such act when the court is satisfied that this act is in the best interest of the company and its members (Date, 2012).

Within the corporation act under part 2F:1A, statutory derivative action is defined as a particular kind of consideration that may be required for an arrangement in some future time. The future time will not be less than those as prescribed in the regulation which will start after the day from which the arrangement is entered into. Along this, the amount of consideration is also determined that comes from value of such thing (of any nature) that is finalized during the arrangement which could be an asset, a rate, a commodity or an index (Date, 2012).

The applicant could ask the court for a derivative action when the applicant feels that the arrangement made between him or her and the company has been violated and the amount that the company is not liable to use for its personal uses as done in this scenario by the key share holders who withdraw $100,000 for their own use.

Themes, being a forensic accountant make the most of his accounting, auditing and analytical abilities when carrying out an exploration on the case of Hydro Power Limited. Similarly significant is his capability to act in response right away and to communicate financial data noticeably and succinctly in court room surroundings. He is allowed and taught to look further than the numbers and agreement with the business realism of the current state of affairs. Forensic accountants encompass multi disciplinary approach and have a wide array of understanding in the forensic and analytical area. They are often called on to be used as expert onlookers and legal action professionals. As forensic accountants Themes, I would advise him to start working in regions for example: (Date, 2012).

•Investigate both Lucia and Juan official records thoroughly;

•Research and evaluation of facts and proof;

•Grounding of expert accounts;

•Sworn statements and evidence to support his asserts;

•Offer oral data in courtroom;

•Specialist purpose, intercession, intervention;

•Dispute declaration;

•Liquidation or bankruptcy holds up inquiry; and fraud avoidance and alertness approaches (Date, 2012).

General obligations and legal responsibilities under the Companies Act 2001, these are essentially a legislative interpretation of the common regulation and reasonable regulations, responsibility to take action in powers, section 171: A director of a corporation must-

(a) ...