Editing my answer papres Essay Example | Topics and Well Written Essays - 1250 words

Editing my answer papres - Essay ExampleThe warehouse was burgled and the company suffered a loss of $30,000. The insurance company claimed that the insurance insurance did not cover burglary and therefore refused to pay.Duty of care was breached when Daniel failed to check the content of the insurance policy. When Quality waiting room expected to collect insurance it was faced the losings of 30,000 $ which affected its financial state, because he did not carefully check the statement and should be held liable for it. If Daniel is unaware of nature of insurance policies, because he is an accountant, it is no cond star to just sign the policy. He should impart spent time and even requested legal advice if necessary not to be held liable in this position case.As for his liability in duty of loyalty, he is liable for getting personal benefit by offering a client of Quality Sofa Bed a discount that not the companys interest, but rather his own interest. If the client had approached D aniel as an individual, then he would not be held liable.Although Daniel should have disclosed that the warehouse that Quality Sofa and Bed purchased was his, he saved for Sofa and Bed 5,000 $ because the fair value was valued +5,000 $. In the particularised incident he kept his self-interest aside and put the companys benefit on the first place.Although Daniel did not technically breech his duty of loyalty in the warehouse incident, he definitely breeched his duty of care with the insurance contract and his duty of loyalty with the personal gain he benefited from. There were two violations of duties. I think that although he sold his warehouse for less than fair value and since he insisted on the directors to purchase his warehouse, he should have at least disclosed that he owned the warehouse or even restrained from voting. Since he already breached one duty of care and one duty of loyalty he cant be considered a reliable director.Corporate governance has failed miserably to aler t of send signals to everyone that