Organisation law case study Research Paper Example | Topics and Well Written Essays - 2500 words

Organisation law case study - Research Paper Example This clearly indicates the intention of Yana and Su to promote their own company’s interests rather than the interests of Free Spirit Pty Ltd. Yana Yana is an executive director of the company. To determine whether she had fulfilled the obligations as a director, prescribed by the provisions of the Corporations Act 2001 and the common law, the following issues have been taken up for discussion. The Corporations Act 2001 requires directors to exercise due care and diligence during the discharge of their duties towards the company. This has been specified under Section 180 of this Act. Such due care entails protecting the interests of creditors and the interests of the shareholders when the company is expecting to become insolvent. This was held in the Credit Lyonnais case (Keay & Zhang, 2008, p. 142). The duties of company’s directors are specified under Sections 180 to 184 of the Corporations Act 2001 (Muscillo, 2009). Section 180 of this act protects directors who take decisions in good faith and for a proper purpose or when they reasonably believe that their decision will further the best interests of the company (Tesarsch and Tiller, 2010). It is incumbent upon directors to act solely for the bona fide purposes of a company. This was the gist of the ruling in Howard Smith Ltd v Ampol Ltd (1974). A director is liable if he relies on the information provided by others and as a result fails to notice mismanagement in the conduct of company affairs. Whenever there is an attempt to embark upon a very risky venture, directors of the company are required to be sufficiently circumspect. This was the ruling in Daniels v Anderson (1995). As such, in Australian Securities and Investments Commission v Macdonald (2009), the Supreme Court of New South Wales had to determine if a breach of duty toward their company had been committed by the officers and company directors of James Hardie Industries Ltd. In particular it was to be ascertained whether the duty o f care and diligence stipulated in Section 180(1) of the Corporations Act 2001 had been breached due to the provision of a defective media statement to the Australian Securities Exchange regarding the ability of the company to meet certain future liabilities (Hargovan, 2009, p. 986).The Supreme Court ruled that these directors and officers of the company had breached their duty of care. In addition, the court also held the company in breach of its statutory obligations under the continuous disclosure provisions. A director has to comply with the requirements of the business judgement rule in order to obtain protection under Section 180 (2). As Yana had acted in a manner that was detrimental to the interests of the company, she cannot resort to such defence. She had purchased sports equipment at a higher price from her own company, and this clearly indicates the absence of loyalty and due care on the part of Yana. She has decided to expand the business of the company, Free Spirit Pty Ltd, to Alaska without assessing the legal and financial aspects of the company in that area in the future. Yana has breached the duties of good faith and due diligence, as per the provisions of the Corporations Act. She cannot evade liability for violation of the provisions of fiduciary duties of directors under the Corporations Act and common law. As per the decided case law, she is liable for breach of fiduciary duties, due care and diligence. Su Su is the finance director of the company Free Spirit Pty Lt

Comparing Fordism and Scientific Management (Taylorism) Research Paper

Comparing Fordism and Scientific Management (Taylorism) - Research Paper Example In order to run a successful industry, call for a systematic study of the labor force and productivity. In order to make rational and sound comparisons of these theories, it is crucial to understand their economic sense that informed their designs. Fredrick Taylor is considered the father of scientific theory, as theorized in the late 1880s and 1890s; the theory has significantly impacted positively to economics on labor and production (Neilson and Rossiter 69). Taylor motivation was based on the need to have a new dimension in the production process1. After the era of rule of thumb where employees were subjected to forceful long working hours, Taylor observed that despite the long working hours, there was little reflection on the productivity. Before coming up with scientific theory, he studied employees pattern in jobs such as movement and time wastage. He recognized there was a lot of time wastage and the unskilled approach used was ineffective. Certainly, the theory was founded after systematic identification of production and output mismatch. The analysis paid attention to rationality, work ethics, standardization and removal of wasteful processes in the entire industrial processes. This harsh economic background informed his suggestion on training each employee and selecting them to undertake the best-suited jobs. In addition, the emphasis on efficiency through utilization of relevant skills and knowledge culminated into the scientific model that is relevant to modern economics and management. This theory developed substantially in 1930s following a shift in European economies to the use of machines and equipment in industrial processes (Kluvert 160). According to Charles Maler, the theory developed from its predecessor Taylorism, a suggestion that focused on organizational productivity through enhancing creativity and innovation in each process. As efficiency continued to dominate economists vocabulary, Fordism