What Is Tracey Cana Case

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In order to determine what action can be taken against Tracey and Tina, we firstly need to analyse each of their situations separately and make a sound judgement based on relevant laws and similar case law.
In the case of Tracey we need to look at the doctrine of corporate opportunity; which more specifically would involve an evaluation of the director’s duties under the Companies Act (CA) 2006, the reason being that there is speculation of Tracey taking advantage of her position as a director, this will be looked in to. Most importantly, it is crucial to clarify exactly what is expected of Tracey before making a judgement as to whether she has breached her duty as a director or not.
Under section 175 of the Companies Act is where Tracey’s duty breach would be relevant, as this section deals with the ‘duty to avoid conflicts of interest’ and applies to the ‘exploitation of any information or opportunity’. In the case of Tracey acting as director of Homeware’s, it is clear that due to the fact she used information from the previous rejection of the “gardens” business and took it elsewhere, and also because of the fact she used Homeware’s previous suppliers for her own personal gain in her new business.
Conflicts interest can be resolved by proper means, such as declaring these interests to the board of directors in hope of an approval, in the of case conflicting interests being approved by directors, all interests would therefore be acceptable. However, Tracey did not declare her conflict of interest and instead used information and opportunities within the company for her own personal gain, this means she has breached her duties as a director, and legal actions can be taken.
Even though Tracey had already left the company when t...

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...s: Even though is not technically a company, an LLP is still at jeopardy of public scrutiny in respect to their finances.
Private Limited Company: Under the CA 2006 law, any registered company which is not a public company is a private company. Shareholding limited to participants in the business.
Public Limited Company: A public company is defined, under the CA 2006, by the fact it is limited by shares, has ‘plc’ after the company name, has limited liability, is registered at Companies House, and states that it is a public company in its certificate of incorporation.
Advantages: if company is listed the shares can be traded on the Stock Exchange, this means capital can be raised easily. Members of a public company can share in its profits without taking any part in its management.
Disadvantages: Needs £50,000 of authorised share capital to register, this is a lot.

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