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Katch Ltd is a small private company. Although there are three members of its board of directors, the actual?day-to-day running of the business is left to one of them, Len, who simply reports back to the board on the?business he has transacted. Len refers to himself as the Chief Executive Officer of Katch Ltd, although he has?never been officially appointed as such.?

Six months ago Len entered into a contract on Katch Ltd's behalf with Mo to produce some advertising?material for the company. However Katch Ltd did not wish to proceed with the advertising campaign and the?board of directors have refused to pay Mo, claiming that Len did not have the necessary authority to enter?into the contract with him.?

25

【論述題】

Explain a director's express authority?

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考點(diǎn)：Chapter18Companydirectors

?A director's express authority to enter into a particular contract is granted formally by the board of directors.?Where such express authority is given, the company will be bound by the agreement.?

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Vlad generates a substantial income from illegal tax evasion and sought advice from Gloria (his personal accountant) on how to dispose of his illegal earnings. Gloria suggested that to disguise the source of the funds, Vlad should purchase a chain of restaurants and pass his gains from the illegal operation through the restaurants' accounts. Vlad agreed with Gloria’s proposal and appointed her as the restaurant chain’s finance director and together they passed the illegal money through the operation.

25

【論述題】

State the offence of money laundering.

State whether Gloria has any liability for money laundering.

State whether Vlad has any liability for money laundering.

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In January the board of directors of Huge plc decided to make a takeover bid for Large plc. After the decision?was taken, but before it is announced, the following chain of events occurs:?

(1) Slye, a director of Huge plc, buys shares in Large plc?

(2) Slye tells his friend Mate about the likelihood of the takeover and Mate buys shares in Large plc?

(3) At a dinner party Slye, without actually telling him about the takeover proposal, advises his brother?Tim to buy shares in Large plc and Tim does so?

28

【論述題】

?State whether Slye committed insider dealing when he bought shares in Large plc?

?State whether Mate has any liability for insider dealing?

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