Veil of Incorporation

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Veil of Incorporation

Introduction

Business world is comprised of small and large organizations, which are established to accomplish their short and long term goals. These organizations irrespective of their size thrive to make profit, to their maximum capability. In today's dynamic environment, firms are dealt with varied factors which directly or indirectly affect the working of organization. Large organizations are run by board of directors and managers to look firm's affair. These managers are appointed with the sole reason to ensure smooth working operation in every department of the company. Organizations do not work in isolation, there are number of stakeholders associated with organizations who are directly affected good or bad operations. Managers are considered as backbone of the organization, who works in the capacity of leaders in the organization. Managers are implied with the responsibility of planning, organizing, motivating and evaluation of employees. Along with system, these managers are responsible for monitoring and evaluation of workers and different systems, implemented in the organization.

For the success of firm, in achieving its short and long term goals, mangers are reared and accredited for taking the company to desired level. In today's dynamic environment, the mangers are required to work to comply with all the legal implications. In this regard several laws and regulations have been developed to monitor and scrutinized the working of managers. Managers are held responsible for following the core and specific codes of conduct.

Discussion

Directors Disqualification Act

This act is applicable in certain circumstances, has been guilty of three or more defaults in complying with companies legislation regarding the filing of documents with the Registrar of Companies. It is applicable when director is found guilty for engaging in wrongful or fraudulent trading.

Corporate Law

The history is filled with evidences where organizations are affected with unfair and dishonest actions of mangers. The 1897 case of Salomon v Salomon & Co Ltd [1897] AC 22 firmly established the principle that a company has a separate legal identity to that of its members. These separate legal identities are protected by the veil of incorporation, which can only be disregarded by the courts in particular circumstances. The veil is lifted in a situation where company is established to prevent itself from legal obligations. Corporate law was established to protect the different stake holders, associated with large organizations. corporate contain different clauses and Acts which defines the legal implication in terms of duties and responsibilities. corporate laws is meaningful source of defining and setting limits for the internal stakeholders of the company.

Duties of Directors

Shareholders of the company appoint board of directors for the company. They are appointed to ensure smooth flow of operation various departments of the company. Board of directors appoints managers for different levels, who possess expertise in specialized departments. The image of the company is well represented by directors as they are aware of the internal and external process of the company.

Overview of Case study on OHS

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