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Company Law help on insolvent liquidation and the derivative action watch

    • Thread Starter

    Hello, I wanted some help with my Company law workshop essay ive been given for a seminar.
    There's two parts to the question:

    Part 1-
    There are three directors in chain of bookshops. They each hold one third of the shares. One of the director's wife has become very involved with the running of the bookshops, she's been doing the company's day to day book keeping and visits the branches to inspect cleanliness/tidiness, also deals with staffing issues and recruitment.
    However, the bookshops trading has been suffering during the past 2-3 years - in Jan 2012
    the directors became concerned with the company’s profits. In June 2012, the company starting trading at a loss. The finance director consulted the other two directors that they should think about the company closing down due to its financial state.
    Unfortunately Christmas 2012 did not give the company the profits they directors had hoped for. The company went into insolvent liquidation in January 2013.
    Advise the directors and the directors wife as to their potential liability.

    Part 2-

    With reference to decided cases, critically analyse how the Courts have applied the recently codified derivative action.

    Any help would be appreciated for this scenario, thank you x

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