Limited Company Practices – Palumbers Ltd vs Paul
The defendant, Paul, took up an illegal procurement that violated the practices of the private limited company. He awarded himself a tender and overpriced the products purchased which is not a legal practice. The vans were purchased at the price of $15,000, and he makes an illegal profit of $10,000. It is a necessity that the procurement process is explained to the board members as stated in the Private Limited Company Act. Paul failed to inform the board members as per the requirements. This means that Paul illegally acquired money from the company members. Hire our assignment writing services in case your assignment is devastating you.
The tort committed by the defendant can be punished in a court because the company, Palumbers Ltd, suffered a major loss of $20,000 following the illegal purchase. If found guilty the defendant is supposed to pay the plaintiffs the amount given $20,000 based on the fact that Palumbers Ltd. is a limited company and the liability ought to be shared with other members. The court has the authority to dissolve the company on the basis that the owner has breached the contractual terms of the company (Schebesta, 2016). Alternatively, the court can also issue a fine to the defendant and restrict his control of the company affairs. The matter would enable the members to come up with appropriate disciplinary measures against the defendant that would deter the recurrence of such an activity (Caranta & Trybus, 2015). The other remedy would involve the dissolution of the company if the owner uses their authority to make money illegally.
Bibliography
Schebesta, H. (2016). Damages in EU Public Procurement Law. Cham, Springer International Publishing. http://dx.doi.org/10.1007/978-3-319-23612-4.
Caranta, R., & Trybus, M. (2015). The law of green and social procurement in Europe. Copenhagen, DJØF Publishing.
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Question 
Limited Company Practices – Palumbers Ltd vs Paul
Paul runs a lucrative business as a plumber. He decides to form a company called “Palumbers Ltd” to take over the business. He buys two vans for $15,000 each and sells them to the company for $25,000 each. No mention of this is made in the prospectus of the new company. The members of Palumbers Ltd have now discovered this transaction.
Advise Palumbers Ltd regarding any remedies that it may have against Paul.