LAW OF BUSINESS ENTITIES

Melanie breached this contract by helping the third party which contractors limited a company which is directly beneficial to her. Breach of Section 140- A director of a company must disclose any relationship between him or her and the third part which is to transact business with the company. The Executive shareholders should as well be aware of this. Melanie breached this contract by not disclosing the relationship between her and the company. The directors are Parties or directors who are in direct contact or a relationship with one of the directors should not be allowed to take part in the tendering or contractual obligations of the company. Simon gave up on the board meeting voting process whereby he gave out the decision to be made by the other board members.

This was not supposed to be the case simply because he is as well supposed to give out his opinion which as well counts hence being in a better position to pass his argument hence have a right to avoid the contract through this section. (Kluwer, 2016) Breach of Section 133- Each and every member in the board is supposed to exercise his powers including participate in the voting process in order to make sure that there is a clear and transparent process especially when procuring tenders. A member who did not willing fully participated in the voting process is not obligated to launch any complain so long as he did it willing fully and there is nothing which was done behind his back.

Breach of Section 180- The entity contracts are not supposed to awarded to any of the board members or their keen. This is an offence which attracts a penalty based on section 189 of the New Zealand companies act. Paula should then go ahead and sue the company for neglecting such important documents which are aimed at ensuring theta there is transparency and reliability in the companies’ transactions. Section 194- The entity books of accounts are obligated to the entities qualified accountants, the accountant is responsible for keeping the books of accounts but the shareholders are as well allowed access by requiring any information. Section 88- place of share register is supposed to be kept in the New Zealand principal register that is liable to the storage of the company sensitive information.

Paula would then go ahead and request the financial statements from the register without involving the other shareholders and obtain all the information she requires. Bonnie should go ahead and sure Clyde since he breached the fiduciary duty which was meant to take care of the relationship between them and the partners. Question two (part c) Section 39 -The other partners should understand the section 39 of the business law that is on the existing rights of persons dealing with firm against apparent members of the firm. Helen did not breach any section as far as the part time cash is concerned; she was just making extra cash which according to the companies act has nothing to do with the company’s performance.