Management and Organizational Studies 2275A/B Chapter Notes - Chapter 16: Regulatory Offence, Fiduciary, Corporate Law

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Philip King

Document Summary

Corporate liability: the corporation is responsible for its own actions. Time-in wants to buy office furniture: luke owns office furniture at home that he willing to sell to the corporation. Luke who is a director at the corporation is obligated to try and buy the furniture at as low as a price as possible. As vendor of the furniture he may be motivated to sell it at a higher price. The duty of competence requires directors and officers to exercise the care, diligence, and skill that a reasonably prudent person would exercise in comparable circumstances. 2 they must meet a general standard of competence: peoples department stores inc. (trustee of) v wise (2004) on page 390. Liability by statute: example: the failure of time-in to withhold and remit income taxes can result in the directors being personally liable for the corporation"s failure unless they prove they acted in a reasonable manner.