“A company is covered by the veil of incorporation and this veil remains in place except in exceptional circumstances. Discuss the Directors’ potential personal liabilities for acts of Fraud and mismanagement under both UAE and US company laws”

Increasingly stringent legislative requirements, together with the enforcement of existing standards and a growing number of corporate governance related regulatory investigations, are of course an immediate response to the significant financial failures experienced in the U.A.E. and US as a result of the global financial crisis. Yet, as the markets look towards future growth, there are clear signs that the move to embrace and institutionalize good corporate governance principles may also reflect an underlying shift towards an economic model that favours sustainable growth through transparency, responsibility and accountability.

Directors and officers of U.A.E. and US companies must therefore adapt to this increasingly regulated environment, and ensure that corporate governance is given due consideration and priority. Failure to do so may give rise to an increased risk of exposure to corporate (and potentially personal) litigation, and regulatory and/or criminal investigation.

The U.A.E. and US corporate laws provide that directors are liable to the company, its shareholders and third parties for all acts of fraud and abuses of power. Directors may also be liable for the mismanagement of the company. It is clear therefore that the potential liability of directors is not necessarily limited to deliberate or serious acts of wrongdoing. Discuss.

How will the essay be assessed?
Introduction:
• This should provide an abstract/ summary of all the issues you wish to discuss in the body of the essay.
• This is your roadmap to the essay. It tells the examiner where you are going and how you plan to get there.
Mark
2/
Body of essay:
• Discuss one after the other the issues you have already identified in the introduction.
• You should divide the body of the essay into sub-sections as you deem appropriate.
Mark
2/
CONCLUSION:
• This should be a summary of the issues you have discussed in the body of the essay.
• An essay without a conclusion is like an unfinished painting.
Mark
2/
Support you discussion with:
• Academic authorities – i.e. textbooks, articles, etc (Suggested 7-10 references).
Mark
1/
Academic discipline:
• Writing a good essay involves knowing what to include and what to leave.
• All sources quote/cite must be acknowledged and appropriately referenced.
1.
Mark
3/
Analysis and evaluation:
• How you have analysed and evaluated the subject-matter of the essay.
• How much you know and understand the subject-matter.
• How you have applied legal, academic and judicial sources.
• How you structured and presented the essay.
• A judgment as to the overall value of the final outcome, and its relative welfare gains when compared to alternative outcomes that might have been reached.
Mark
5/

Each essay should be 1.5 lines, 12 font, 1 inch margins. Please have a cover page with your name, course name/professor’s name, and date. The body of the paper should be approximately 10-12 pages (Excluding cover and bibliography). Plagiarism/copying other people’s work will be detected and punished with a zero, and possibly expulsion.