Log in
Register
Search
Search titles only
By:
Search titles only
By:
Log in
Register
Search
Search titles only
By:
Search titles only
By:
More options
Toggle width
Share this page
Share this page
Share
Facebook
Twitter
Reddit
Pinterest
Tumblr
WhatsApp
Email
Share
Link
Menu
Install the app
Install
Forums
Law Firm Events
Law Firm Deadlines
TCLA TV
Members
Leaderboards
Premium Database
Premium Chat
Commercial Awareness
Future Trainee Advice
Forums
Aspiring Lawyers - Applications & General Advice
General Discussion
Company Law - Challenges of Limited Liability
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
<blockquote data-quote="Syafiqkay92" data-source="post: 10808" data-attributes="member: 376"><p>Hi m24</p><p></p><p>I am not a law student nor a law graduate but I do have some experience being an equity investor of a small company that went bust. I also have some experience marking undergrad essay so my top tips is to answer the question directly. I would suggest you brainstorm a list of challenges faced by equity investors and creditors when achieving their objectives and prioritise the few that are significant. You can then discuss how English Law has developed to address these challenges.</p><p></p><p>One idea. Equity investors usually want return from the company, either in the form of dividend or increase in the value of their shareholding at some point in the future. However, if the management takes a risk, for <em>e.g.</em> pursuing risky business strategy and that risk materialise, equity investors ranked the lowest when it comes to recovering their holdings. So in this case, how do English Law protects equity investors from excessive risk taking by the management? I know equity investors have votes on certain action by the management but the day-to-day management is much more difficult to monitor and this day-to-day action could accumulate and led to the risk being materialised.</p><p></p><p>You probably know a lot of cases where equity investors lack recourse so you could probably start there? Compile a list of cases (manageable and reasonable amount, say 3?), summarise their challenges and evaluate how English Law has developed to address them. You can also do this for creditors too but before you do anything, make sure you have the bigger picture first and prioritise.</p><p></p><p>Hope this helps you strategise.</p></blockquote><p></p>
[QUOTE="Syafiqkay92, post: 10808, member: 376"] Hi m24 I am not a law student nor a law graduate but I do have some experience being an equity investor of a small company that went bust. I also have some experience marking undergrad essay so my top tips is to answer the question directly. I would suggest you brainstorm a list of challenges faced by equity investors and creditors when achieving their objectives and prioritise the few that are significant. You can then discuss how English Law has developed to address these challenges. One idea. Equity investors usually want return from the company, either in the form of dividend or increase in the value of their shareholding at some point in the future. However, if the management takes a risk, for [I]e.g.[/I] pursuing risky business strategy and that risk materialise, equity investors ranked the lowest when it comes to recovering their holdings. So in this case, how do English Law protects equity investors from excessive risk taking by the management? I know equity investors have votes on certain action by the management but the day-to-day management is much more difficult to monitor and this day-to-day action could accumulate and led to the risk being materialised. You probably know a lot of cases where equity investors lack recourse so you could probably start there? Compile a list of cases (manageable and reasonable amount, say 3?), summarise their challenges and evaluate how English Law has developed to address them. You can also do this for creditors too but before you do anything, make sure you have the bigger picture first and prioritise. Hope this helps you strategise. [/QUOTE]
Insert quotes…
Verification
Our company is called, "The Corporate ___ Academy". What is the missing word here?
Post reply
Forums
Aspiring Lawyers - Applications & General Advice
General Discussion
Company Law - Challenges of Limited Liability
Top
Bottom
This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
By continuing to use this site, you are consenting to our use of cookies.
Accept
Learn more…