Capital Maintenance Case of Trevor v Whitworth †Free Samples

Capital Maintenance Doctrine is not a new concept and it has existed more than a decade. This is a doctrine that was first recognized in the case of Trevor v Whitworth in the year 1887. In this case, the judge argued that it is reasonable for a company to lose money in business transactions, and this is basically because of the risks involved in business (Armour 2000). However, it is not reasonable or acceptable for a company to engage in activities that will lead to a reduction of its capital. This is because it will be against the desire of investors and their reasons of investing in a company, which is capital growth.   Ã‚  Ã‚   On this basis, it is possible to assert that the intention of the capital maintenance doctrine is to protect the capital that investors have invested in a company. However, in Ooregum Gold Mining v Roper, the court was of the opinion that capital maintenance doctrine is aimed at preserving and promoting the principle of limited liability (Hannigan 2015). The reasoning of the court is that a shareholder has a limited liability, and it is limited to the extent in the value of his shares. Therefore, reducing the capital of the organization may frustrate the ability of a company to pay off its debts.   Ã‚  Ã‚  Ã‚  Ã‚   Moreover, the 2001 Corporation Act supports the doctrine of Capital Maintenance, and this is depicted in section 256A of the Act, which prevents the company from engaging in any activity that may threaten the financial position and stability of the company. Examples of these activities include financing the operations of other companies, engaging in the expensive process of purchasing buyback shares, etc (Borg 2015). In as much as the doctrine of capital maintenance is useful to creditors and shareholders, the   law allows a company to reduce its capital in some circumstances. For instance, section 254 of the 2001 Corporations Act allows a company to reduce its capital, if it is a decision that is passed unanimously by its shareholders. When a company reduces the value of its capital after getting permission from the shareholders, the process must be transparent and equitable (Hanrahan, Ramsay and Stapledon 2013). Additionally, if the company becomes insolvent because of the reduction of its capital, the directors of the company would be held liable. Therefore, it is their responsibility to ensure that during the process, the value of liabilities does not exceed the value of its capital. Finally, in the case of Fowlers Vocola Manufacturing Company; it is acceptable for a company to reduce the value of its capital, if it seeks to refund investors their capital. Armour, J., 2000. Share capital and creditor protection: Efficient rules for a modern company law .  The Modern   Law Review, pp.355-378. Borg, D.J., 2015. The acquisition of own shares by limited liability companies. Hanrahan, P.F., Ramsay, I. and Stapledon, G.P., 2013. Commercial applications of company law. Hannigan, B., 2015.  Company law . Oxford University Press,.  

Business Plan Essay Example | Topics and Well Written Essays - 1000 words

Business Plan - Essay Example 2. Name of the Ethical Business I would name my transport business as Comfy Travelling Agencies, since it corresponds to services offered in the industry, and strategy and set of laws central to the provision of services. 3. Mission Statement for Ethical Business The mission statement, for the ethical business I have selected states, â€Å"Comfy Travelling Agencies† aims at providing quality and affordable transport services to society† (Stephenson & Thurman, 2007, 34). 4. Business and Market Description My written business description for business and market are a business review, history, position and amenities, legal company outline and the proprietors. The business is motivated by the desire to have an enhanced bus transport service to offer, and cater for all stakeholders needs. My business offers quality and reasonably priced transport facilities to all the societal members. The business serves the society at any time of the day, since it also operates at night. Th e choice for the selection of transportation business environment will consider the significance of the location to the business; since, rent will be charged in the business operational environment. Consequently, the location should suitable for achieving business goals. My location choice for the business would be in Montana, USA. The facilities that would be available to the business are free access roads in the region and freedom from government tax systems (Audi, 2009, 44). Set of laws and regulations controlling the business operation will be clearly stated, and the Oder of command in the industry will be straight (Miller & Cross, F2011, 76). I will be the main business proprietor, since I will be the one funding the whole operation. I will also be the one with the idea of how the industry is to be managed. 5. Goals Objectives Actions Timing Short term The company’s short term business goal is to provide an affordable transport system to the town’s population, whi ch will solve the town’s undisciplined transport operators managing the company in an exploitative way. 1-6 months Mid term The mid term business goal is to retain the company’s entire staff, and motivate them to yield a high quality customer satisfaction and increased profit making in the company. 7-11 months Long term The company’s long term goals are gratifying the customers’ needs by improving on the quality and expanding the business to other key town after a year. 1-2 years 5. SMART Objectives for the Business Smart objectives will assist the transport business to realize the accomplishment of shot term plans and motivate the staff in achieving long term objectives. Specific The business objective is to earn customers loyalty within the first two months of operation. The reason for the objective is to create a secure liaison with clients and maintain them for a long time. The drives and the customer care department are involved in attaining the obje ctive. The site where the target is to be achieved is on the roads where clients are transported various localities. The driver should drive safely and timely to ensure that customers are on schedule with their plans for the day. Measurable The objective would be measurable, since, the number of clients travelling with the companies’ buses will be documented in a daily basis. The data will be tallied at the end of the first month to confirm whether

The role and responsibilities of a subject leader in secondary school Essay

The role and responsibilities of a subject leader in secondary school - Essay Example Subject leaders are responsible for meeting the needs of all pupils in their area of work through planning that emphasises individual needs; through teaching that recognises the importance of clear learning objectives and high expectations for all pupils; through assessment that informs planning and learning; through close collaboration with other staff in devising and implementing individual education plans, and through the deployment of staff and resources as determined by pupils' needs. This places a particular responsibility on subject leaders to develop and agree systems and procedures with other members of the team. (Green, 2004) Effective leaders motivate and support all those efforts that are involved in teaching and learning in their subject or area of work. This includes recognising and acknowledging the contributions of others, building and maintaining a team with clear aims, clear goals direction and targets, and helping others and self to set and meet appropriate professional development targets. Leaders possess the responsibility for monitoring and evaluating the effectiveness of teaching and learning in their subject or area of work, in particular to help set targets for pupil and staff performance, and determine any priorities in relation to the subject or area of work. ... size of the school or college and in many smaller schools the head teacher may retain a major responsibility for monitoring and evaluating both pupil and staff performance. The subject leader still want to use evidence of pupils' achievement and start developing plans to set targets and looks forward for improvement. (Holden et al, 2000) Subject leaders need to be confident about and have expertise in their subject or area of work in terms both of knowledge and understanding and of pedagogy. Subject Leaders Accountability Subject leaders are accountable for performance within their particular subject area. They are accountable to pupils, parents, colleagues and the senior management team of the school in which they work. (Green, 2004) "Accountability" as the term is used today refers to the belief that teachers and schools should answer to the public for the academic achievement of students. Indicators are used to represent what and how much students have learned. Following this line of reasoning, it makes perfect sense to design assessments that can be used to measure student outcomes and to infer teacher and school competence from these reported outcomes. Consequently, accountability becomes operational through the administration of tests that serve as mechanisms to audit the performance of teachers and schools. According to Bernauer, "School leaders must effect certain school-level changes as a precondition for ongoing improvement, particularly in regard to the allocation of time; that is, in order for dialogue to be productive, it must not only be focused but also be a regular component of the school day. Adequate instructional time must also be available if the results of dialogue are to be effectively transformed and delivered in the classroom. While there