Accountable Actions Overseas Subsidiaries †Myassignmenthelp.Com

Question: Discuss About The Accountable Actions Overseas Subsidiaries? Answer: Introduction: In this case, it has been ob served that certain terms have been used to denote the nature of the company. It is to be discussed critically by mentioning all the essentials of these and the importance of them in the company affairs. Directing the mind and will: It is clear from the term that the persons who are engaged to take all the necessary decisions regarding the company affairs are fall in the term (De Wet 2017). It is no doubt to state that a company is governed by the acts of the Board of Directors. The company is not an finance person but it is a separate legal entity. Several case laws support the concept regarding the separate legal entity of the company. However, Board of Directors is regulating the works of the company and as such they are considered as the mind and will of the company (Flint 2016). The term directing mind and will is established in the year 1944 and the term got the clean chit in the case DPP v Kent and Sussex Contractors Ltd. In many cases, it has been observed that the directors of the company are engaging them in certain illegal works. The victim party has to suffer a lots of problem regarding the claim as the directors are adopting the common excuse regarding the nature of the company. In this doctrine, it has been stated that if the directors know the fact that the acts to be done are illegal in nature,economywill be held liable for the same (Lipsitt 2013). It has been mentioned in Tesco Supermarket v Nattrass (1971) UKHL 1 that the directors are the part of the company and they are representing the mind and will of the company. Therefore, if any mischief has been done regarding the company affairs, the affected party has the option to sue the company for that. Piercing corporate veil: The term corporate veil means the legal nature of the company. it has been observed by the court that the company ought not to be held liable for the illegal acts of the directors and shareholders. Therefore, there is a fictitious layer applied on the legal nature of the company and the same is stated as the corporate veil (Yadav 2017). However, in recent case, it has been find out that the directors of the company is taking the excuse that directors are the part of the company and therefore, they should not be held liable for any illegal acts and they are hiding them behind the corporate veil of the company. This acts of the directors of the company is affecting the nature of the company and it becomes necessary to solve the problem so as to maintain clarity among the directors. In the case of the Gilford Motor Co. Ltd. v Horne, it was held that if the directors of the company have done any illegal activity, they would be held liable without affecting the legal entity of the company. the court will perform the job by lifting the corporate veil of the company. this procedure is known as the piercing the corporate veil. This doctrine supports the fact that a company should not hold liable for the acts of the directors or the shareholders. If guilty has been proved against any officer of the company, they will be penalised only and not the entire company. Conclusion: Therefore, it can concludes that the importance of these two phrases are quite acceptable in the company affairs. Reference: De Wet, M., 2017. Directing'The Absolute': towards destabilising the victim/operations binary in Sam Shepard's A lie of the mind (1985) (Doctoral dissertation, University of Pretoria). Flint, D., 2016. Incentives, Employers, and the Corporate Veil: Should Domestic Corporations Be More Accountable for the Actions of Their Overseas Subsidiaries?. Ariz. St. LJ, 48, p.833. Lipsitt, L.P., 2013. impression of outside objects, whether agreeable or offensive; but the mind, possessed of a self-directing power, may turn its attention to whatever it thinks proper. It should, therefore, be employed in the most useful pursuits, not barely in contemplation but in such contemplation as may. Early Influences Shaping The Individual, 161, p.207. Yadav, P.K., 2017. Lifting of Corporate Veil