Business Law for Dick Smith

The Sydney Morning Herald, March 20, 2017 The Directors and the Executives of Dick Smith have been accused of mitting a breach of their directorial duty to exercise reasonable care after the pany has suffered financial collapse in January 2016. The former directors of the Dick Smith had to face legal action 14 months after the electronics chain was put into administration. Receiver brought a legal action against the directors and executives to recover losses worth $60 million as the directors failed to exercise reasonable standard of care and skill managing the pany’s inventory. The pany was alleged that its inventory purchasing decisions are based on maximizing rebates instead of demand of the customers which led to an increase in the redundant stock amounting to $180 million by October 2015. The excessive stock led the pany write off $60 million of inventory in November 2015. The directors were accused of inflating profits artificially in the 2015 financial year, as they were recoding rebates as profit. Although the directors denied that they made the purchasing decisions based on rebates, the chief financial officer of the pany admitted in court that the pany did adopt a strategy to enhance the earnings from rebates. The law firm defending the directors contended that the directors have always acted diligently, consciously and exercised reasonable care while carrying out the business operation of the pany. The issue that arises in the Dick Smiths case is that the directors have failed to exercise their statutory duty to exercise due care and diligence while carrying out the business operations of the pany. According to Section 180 (1) of the Corporations Act (Cth) a director was required to act with reasonable care and diligence. Under general law, whether a director had mitted a breach of his directorial duties is subject to the subjective assessment and depends largely on the director’s own knowledge and skill (Velasco 2014). However, in Re City Equitable [1925] the rule, the court held that in order to determine whether a director has violated his directorial duties, the objective test shall be applied where the director must establish that he has exercised reasonable care and diligence and had not mitted a breach of his duties. In Dick Smith’s case, the directors and the executives were alleged to have failed to place adequate systems to manage the supplier rebates and inventory of the pany. In ASIC v Healey [2011], the court held that the directors of the pany are under statutory obligation to be able to read and prehend the financial statements of the pany instead of simply relying on the fact that the systems are in place. Further, in Daniels v Anderson [1995], the Court of Appeal held that directors must prehend the nature of the duty that they are statutorily obligated to perform. Section 180 (1) of the Act further requires to impose an objective ‘reasonable person’ test in order to determine whether the director has exhibited hid duty of care and diligence in the manner as any reasonable person would exhibit under similar circumstances. ASIC v Healey & Ors [2011] FCA 717 JWS Daniels v Anderson [1995] 37 nswlr 438 Re City Equitable Fire Insurance Co [1925] Ch 407 Velasco, J., 2014. A Defense of the Corporate Law Duty of Care.

The War Against The White American Man Research Paper

The War Against The White American Man - Research Paper Example Racism against white people is one of the critical areas of concern. The country has undergone tremendous changes for many years and there are prospects of continual growth in the coming years in regards to the strong economic backbone. Therefore, all people need to get it through there minds that there will always be people out there that do not have similar looks as they do, and do not have the same reasoning capacity the way they do, won't die the way they do, do not have dietary perspectives a theirs and would not raise there kids the way they do. This characterizes complexities of life. Everything on this planet has to come to terms with its surrounding. Thus people have to either learn to adapt or face the wrath of being rigid to change. Do know how dull life would be if everyone was the same color? If you are a believer in God or any other form of a supreme creator, then the decision to make everyone to look the same would not have been a problem (Strong, 2008). Existence of d ifferent races is just analogous to the difference in Everything that comprise our environment such as birds, plants, and natural features. Therefore, it is inconceivable for any reasonable being to escalate racism among the white American man since they society holds him as the instigator of racism. Just like it is easier for the minority to receive public recognition, the white American man requires similar recognition in order to curb racism propagated against the group (Wise, 2012). White men have been blamed by many nationalities for every ill thing that has been infused into the society (Flemming, 2003). Worse of it all, is that their own women are league with other races in blaming them. In regards to these racism actions, the white man has become an endangered human species because the world is embracing thugs, drug dealers and their form of life, while those things pioneered by the white boys or males is shunned away due to memories of the slavery (The Telegraph, 2011). As a white American husband to a black woman, I experience prejudice from the male black and other ethnic groups but not from my white counterparts. According to my own understanding, white people do not have any advantage against the Indian, Chinese, colored, or black community because we are human beings subject to feelings, need to belong to a family, love, feeling and much greater need to live life. There are several forms of bigotry in the society that has received much support due to the entertainment aspect associated with it. To begin with, my evaluation of the Japanese donning themselves with bushy wigs or beards, large fake nose embellished with speaking in loud, broken, and poor English is a direct demeaning activity to the white population. The white communities that take note of these practices are left in the dilemma whether to perceive it as offensive or as a form of amusement meant for entertainment purposes (Morgan, 2008). Nevertheless, the white person is not allowed to stereotypically dress like the Japanese people in yellowish skin, â€Å"slanted eyes,† geeky glasses, and buck teeth because the world would immediately recognize that as an unpleasant negative typecast. Similarly, the black community has received much recognition through their comedy routines where they openly say almost every thing they wish about the

Globalisation Essay Example | Topics and Well Written Essays - 1750 words - 1

Globalisation - Essay Example Globalization is the process of moving towards a single-world society which has led to an increase in the economic activity in the world. For the purpose of this paper globalization would mean economic globalization which has been defined as the integration of national economies into the international economy through trade, foreign direct investment (FDI), through the flow of workers and flows of technology Bhagwati, 2004). Debates ensue but the benefits of globalization are established; however while globalization has many benefits it also has many negative effects as reflected in the poor standard of living in some nations. Globalization has also been viewed as the dominance of western economic and cultural interests over the rest of the world, as the perpetuation of inequality between the rich and the poor countries and region (Brinkman and Brinkman, 2002). This is because corporate power by the MNCs has been utilized for maximizing profits without social responsibility. Frankel ( 2006) agrees that globalization has intensified competition thereby reducing costs and enhancing quality; it has led to liberalization, deregulation and privatization and opened up capital markets. Frankel emphasizes that at the same time, globalization has undermined the economic prospects for millions around the world. The gap between the poor and the rich has increased as the benefits and costs of globalization are unevenly distributed across the world. Bhagwati believes that charges of hypocrisy, unfair trade practices and double standards against the rich nations are baseless and instigated by NGOs such as OXFAM. Such charges instigate protectionism by the developing countries which can only hurt their own prosperity. Bhagwati fails to recognize that nations that have opened up their economy and have not been protectionists may have registered high growth rates but this does not necessarily translate into poverty reduction, as stated by Akoum(2008). Growth and poverty reduction are the ultimate goals of efforts geared towards development but policies that concentrate on growth may only be looking at a part of the development problem. For instance, Latin America can be cited as a model of trade openness but in terms of standards of living, the results are abysmal. This conforms to the standard economic model, as pointed out by Singer (2004, p92) which suggests that no one’s economic welfare can be improved without reducing the welfare of at least one another person. Unconstrained globalization can no doubt lead to economic efficiencies but the ruling elite have to ensure overall welfare. At the same time due to cost efficiencies, when world production shifts to countries that do the poorest jobs, efficiency is adversely affected. This occurred when the US shifted jobs to Mexico as a result of free trade; this resulted in increase in salaries in Mexico but adversely affected incomes in the United States (Singer, 2004, p78). The drivers of globalizati on include efforts to reduce transportation and communication costs by the private sector and efforts towards reduction of trade and policy barriers by the public sector (Frankel, 2006). Finding a strong connection between poverty and globalization, Singer (2004) asserts that technological upgradation has taken place in developing nations but