To which of the following does a director owe his/her statutory duties? Select one: a. The members personally b. The company as a whole c. The board of directors. Edward, an accountant, is hired by C...

To which of the following does a director owe his/her statutory duties?

Select one:

a. The members personally

b. The company as a whole

c. The board of directors.

Edward, an accountant, is hired by C Ltd to prepare a report on the financial strength of C Ltd. Edward is informed that the purpose of the report is to persuade H Ltd to buy all C Ltd’s shares. Edward prepares the report but carelessly fails to identify that C Ltd is not profitable. Which of the following is accurate concerning Edward’s potential liability for negligent misstatement:

Select one:

a. Edward will not be liable to H Ltd because there was no contract between him and H Ltd

b. Edward will not be liable because his advice was prepared for C Ltd, not H Ltd

c. Edward will be liable because the advice was prepared specifically for the purpose of persuading H Ltd to acquire shares in C Ltd, and it was reasonable for H Ltd to rely on Edward's advice.

d. Edward will not be liable because it was not reasonable for H Ltd to rely on his advice.

What is a creditors' voluntary liquidation?

Select one:

a. When shareholders pass a special resolution to wind up the company and the company is able to meet its debts in full.

b. When shareholders pass a special resolution to wind up the company and the company is insolvent i.e. it cannot pay its debts.

c. When the company is subject to a court order requiring it to be wound up, usually because it is unable to pay its debts.

Jun 10, 2022

SOLUTION.PDF

To which of the following does a director owe his/her statutory duties? Select one: a. The members personally b. The company as a whole c. The board of directors. Edward, an accountant, is hired by C...

Get Answer To This Question

Related Questions & Answers

Submit New Assignment