Answer to legal problem questions Essay Example | Topics and Well Written Essays - 1250 words - 1

Answer to legal problem questions - Essay ExampleWhile in the upshot of Daniels V. Anderson6 involving similar facts, Daniels counter-sued by alleging that the Board failed to discharge their duty of care and diligence. The Court held that auditors and executive directors are liable in negligence since they had no mechanism in place allowing the directors to monitor the audit which contributed to failure to report the irregularities. Further, it ruled that the test for the breach of duty of care was objective. The court laid down mandatory duties for directors to dumbfound basic standard of understanding of the companys business under a continuing obligation to keep informed of the companys activities abridge a general monitoring of the companys affairs and understand the financial status of the company. The campaign of ASIC V Rich7 affirmed the decision in Daniels8 rakehell of cases regarding the required duty of care and skill among directors. While the case of Clark9 held tha t there is a core, irreducible requirement of involvement among directors in the management of the corporation which prohibits dormancy or passive directors.Applying these cases, the suit filed by the auditor against DD, WW and SS shall prosper for failure to exercise the standard of care and diligence required under S180. Their negligence caused harm to NatureWorld for failure to monitor the financial condition of the company and to conduct a general monitoring of the companys affairs.The Corporation should file a case against the auditor, DD, WW and SS, as executive directors for breaching the standard of care and diligence required under S180, which provides a civil liability provision, for the damage incurred by the corporation brought about by such breach.Facts/Issues One of the employees of the company, Noi Dea was negligent while conducting a tour,