Hate Groups Essay - 1157 Words

BAN THE HATE GROUPS!! br brRight now, there are many active hate groups in the United States such as the Ku Klux Klan, Neo-Nazi, Skinheads, Christian identity, Black Separatists, etc. These hate groups like the Ku Klux Klan, which is one of Americas oldest and more feared, use violence and move above the law to promote their different causes. Another example is a group called Christian Identity, who describes a religion that is fundamentally racist and anti-Semitic; and other are the Black Separatist groups, who are organizations whose ideologies include tenets of racially based hatred. Because of the information gathered by the Intelligence Project from hate groups publications, citizens reports, law enforcement agencies, field†¦show more content†¦The child is probably growing up in a dysfunctional family that gives him little attention and when he is older he will cling to the Klan because membership in this group will provide him with a strong family structure that his parents never gave him in his own home. Some people say that adolescents need to feel like they have responsibility, and the hate groups give them this responsibility. They can give them a wide range of duties from simple responsibilities like guarding a door, to big responsibilities like organizing recruitment. When they complete the tasks given to them by the group, they feel like they are needed for the survival of the group, and they have purpose in life. This is one reason why hate groups should not be allowed to exist because young people are the future of our society and these hate groups are trying to turn them into a bad element for the society. br brAs hate crimes have risen in number during the past five years; many state governments have attempted to prevent such crimes by passing laws called bias laws. These laws make a crime that is motivated by hatred based on the victims race, religion, ethnic background, or sexual orientation a more serious crime than such an act would ordinarily be. Many people believe that these laws violate the criminals freedom of speech. Many hate group members say that freedom of speech is the right to say or write or publish onesShow MoreRelated Westboro Baptist Church: A Deviant Hate Crime Group? Essay2631 Words   |  11 Pagesthat does not break any laws, but is considered to be out-of-line, is the Westboro Baptist Church. The Westboro Baptist Church has been called offensive and their actions are frowned upon by many. Is the Westboro Baptist Church actually a deviant group in disguise? In order to get to know about the Westboro Baptist Church, a person needs to know a little about who they are, where they came from, and what they represent. The Westboro Baptist Church was created in 1955 by a man named Fred PhelpsRead MoreEssay on Hate Groups on the Internet3671 Words   |  15 Pages The Web of Hate Technology has provided our society with numerous innovations that have been created to improve the quality of life on a daily basis. One such innovation is the Internet. The access to a wide variety of information is perhaps the most valuable tool, as well as the most important tool, that we have entering the twenty-first century. There are virtually no limits on how much can be achieved through the use of the Internet. This is notRead MoreThe Effects Of Free Speech On Hate Groups, And The Protection Of Hate979 Words   |  4 PagesThe relationship of free speech to that of hate groups, and the protection of hate speech under the first Amendment is a much debated topic of ethics and civil liberties. Although affirmative action protects against discrimination of race, religion, gender, and disabilities, it only protects from discrimination in educational institutions and employment. So how can a society that claims to protect civil rights allow the production of speech that oppo ses those same fundamental rights?, because thisRead MoreWhy I Hate Group Projects1654 Words   |  7 PagesWhy I Hate Group Projects: A Memoire At this point in my educational career, I now possess a clear conversance of what my strengths and weaknesses are when it comes to successfully completing my courses. Though I believe myself to be a generally pleasant person and have never been one to shy away from social interactions—well, most of the time—working in a group, regardless of what the project may entail, has never been a skill set I embody for a plethora of reasons. Though it was no less than expectedRead MoreRole Of Human Service Workers And Overcome Issues Caused By Hate Groups1306 Words   |  6 PagesRole of human service workers to overcome issue caused by hate groups The human service workers play a vital role in helping people to overcome, psychological, physical and alienation problems etc. The increasing of human problems in the modern world had become an issue. The human service professionals use different kinds of techniques to resolve the issues of people in the community (Woodside McClam, 2012). Human service workers often witness some of the saddest sides of humanity, as when workingRead MoreThe Misconception Of Hate Groups902 Words   |  4 Pages The Misconception of Hate Groups Introduction-Did you know that the Ku Klux Klan (a white supremacist hate group) resides in about 22 states and counting. There are many hate groups all over the U.S. that cause a lot of violence which may lead to death and many injuries. And when these hate groups get out of hand, this can lead to property damage to. If an incident like Charlottesville, is big enough, this cause a lot of tension between political officials and parties. With these recent eventsRead MoreEssay about Hate Groups886 Words   |  4 Pages Hate Groups nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;In today’s society where differences between people are magnified and everyone is discussing diversity, tensions between different groups are remarkably high. The extreme of this tension is brought out in hate groups. Hate groups play off of the stereotypes of specific peoples. They use these generalities in their relentless and often violent persecution of those different from themselves. nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;ThereRead More Hate Groups in the United States Essay1142 Words   |  5 PagesHate Groups in the United States Right now, there are many active hate groups in the United States such as the Ku Klux Klan, Neo-Nazi, Skinheads, Christian identity, Black Separatists, etc. These hate groups like the Ku Klux Klan, which is one of America’s oldest and more feared, use violence and move above the law to promote their different causes. Another example is a group called Christian Identity, who describes a religion that is fundamentally racist and anti-Semitic; and other are theRead MoreEssay on How to Fight Hate Groups566 Words   |  3 PagesA Hate Group is an organized group that acts with violence and hate towards people because of their religion, race, gender, and/or sexual orientation. Hate groups act either verbal or physical towards certain people. There are many different hate groups. Some hate groups don’t like anyone who is black, some act against people who are homosexual, and some don’t like and will act cruel toward someone who is Jewish. According to the Southern Poverty Law Center (SPLC), there are 926Read MoreShould Hate Groups Be Allowed Free Speech?725 Words   |  3 PagesFrom the century-old Ku Klux Klan to the widely publicized Westboro Baptist Church, hate groups have always been prevalent in America. They have been around since humans have had the ability to share and act upon common hatred towards others. Why do they still exist today even after all the progress our society has made fighting against racism and intolerance? The answer lies in the First Amendment right to free speech. Our democratic society allows all citizens the freedom to express any and all

Severe income disparity A review of the WEF’s global risk Free Essays

string(135) " third concept used by Milanovic is based on the principle of treating everyone in the same manner, regardless of one’s nationality\." ABSTRACT This paper provides a discussion of one of the most persistent global risks identified by the WEF, namely severe income disparity.The report focuses on describing the systemic nature of this risk along with indicating its manifestation in both developed and emerging economies. Moreover, three distinct concepts of measuring global income inequality are presented as based on Milanovic’s research. We will write a custom essay sample on Severe income disparity: A review of the WEF’s global risk or any similar topic only for you Order Now The paper discusses numerous interconnected risks to income disparity, and provides recommendations for improvement. INTRODUCTION According to the World Economic Forum (WEF), severe income disparity between the richest and poorest citizens has become one of the most substantial risks facing the global community in the 21st century (Global Risks 2012). The WEF has emphasised the urgency to tackle income disparities because of the widening chronic gap between the rich and the poor. This aspect represents a serious threat to social stability in the global context. The risk of severe income disparity also raises concerns about persistent recession, which has an adverse effect on middle classes in developed economies (Law et al. 2014). In addition, it has been indicated that the process of globalisation has led to a polarisation of incomes in emerging and developing economies. Identified as a systemic risk, severe income disparity is defined as the unequal distribution of individual income across different participants in an economy. Income inequality also refers to the percentage of income which corresponds to the percentage of population (Armour et al. 2013). This concept is associated with the notion of fairness, and it is usually considered unfair if the rich citizens have a substantial portion of a country’s income in comparison to representatives of their population. Moreover, the causes of severe income disparity tend to vary by specific characteristics, such as region, education, and social status. It is important to explore the implications of such income disparity globally (Schneider 2013). This type of inequality is generally measured through the ‘Gini coefficient’, which provides adequate information about the way of how income distribution in a particular country deviates from the notion of perfect equity (Grabka and Goebel 2014). The objective of this paper is to explore and critically analyse the WEF risk of severe income disparity. SYSTEMIC DIMENSIONS OF THE PROBLEM OF INCOME DISPARITY The concentration of substantial economic resources in the hands of fewer individuals indicates a significant threat to stabilising global political and economic systems (Chang et al. 2013). As a result, political organisations engage in a process of addressing the demands and needs of economic elites, which are identified in different economies, both developed and developing. This occurs to the detriment of ordinary citizens, who appear adversely impacted by severe income disparity (Berveno 2014). The global financial crisis has sparked research interest in exploring the dimensions of income disparity across the world. Regardless of extensive discussions on the negative impact of income disparity in developed and emerging economies, this has not resulted in adequate solutions to the problem (Lin et al. 2014). It can be argued that world leaders and politicians unite their efforts to provide a realistic framework of how they can address the issue of income disparity (Burz and Boldea 2012). The problem of widening income inequality is systemic in nature and is linked with political influence. The poorest citizens in the world usually tend to lack access to modern economic and political systems that enforce specific laws and regulations (Pulok 2012). In developed economic systems, representatives of the low and middle classes are commonly found at the low levels of society due to unaffordable education and challenges of obtaining credit facilities. In addition, jobs with high salaries have become scarce (Chang et al. 2013). This emerges as another contributing factor to widening the gap between the richest and poorest citizens. MINIMUM QUALITY OF LIFE The discussion of a minimum quality of life has been recently initiated in the United States. The focus has been on keeping the dignity and respect of human beings intact. Yet, it can be argued that Europeans are more advanced than Americans in terms of the discussion of the issue of severe income disparity (Bergh and Nilsson 2014). The gap between the richest and poorest citizens is mostly evident in developed economies, according to the WEF report (Global Risks 2012). Although such uneven growth is considered normal in emerging markets, they are more likely to face the problem of income inequality in the near future (Shin and Shin 2013). Some may argue that income disparity is an inevitable by-product of free markets. However, there is no substantial evidence to support this claim. There is no easy solution to the issue of income inequality, but global leaders tend to suggest that balance is fundamental (Bergh and Nilsson 2014). Government intervention may appear a relevant solution to the problem. Yet, it should be considered that such intervention should not have a negative impact on market efficiency. Government intervention may be focused on increasing market access. Other individuals and groups that hold a more pessimistic view indicate that the inability to influence government policy can prevent the creation of any changes that try to alleviate the problem of severe income disparity (Global Risks 2012). DIFFERENT CONCEPTS OF INEQUALITY Branco Milanovic is one of the main researchers looking at the issue of severe income disparity. He emphasises three distinct concepts of inequality. The first concept is associated with the aspects of unweighted global inequality. It refers to the use of GDP per capita and ignores population (Milanovic 1998). This type of inequality has been progressively decreased in the last few decades. The second concept relates to population weighted global inequality where it is assumed that all people in a country receive the same income (Pulok 2012). Yet, the precise number of representative persons from each country indicates its population size. If this measure is applied, it appears that income inequality has decreased in the past several years, even though it has expanded in countries such as China and India (Bergh and Nilsson 2014). The third concept used by Milanovic is based on the principle of treating everyone in the same manner, regardless of one’s nationality. You read "Severe income disparity: A review of the WEF’s global risk" in category "Essay examples" This has gradually become a global measurement of income disparity (Shin and Shin 2013). It can be suggested that by applying the proposed measure in practice, global inequality substantially increased in the period from 1988 to 1993. As a result, the poorest 5% have lost almost 25% of their actual income, whereas the richest citizens have gained approximately 12% (Milanovic 1998). ESSENTIAL FINDINGS In the United States, the sector of Accommodation and Food Services emerges as the most unequal sector in the US economy, dominated by substantial inequality within this industry (Auten et al. 2013). It has been indicated that Accommodation and Food Services demonstrated a CEO-to-worker pay ratio of 543-to-1 in 2012. The ratio of compensating fast food CEOs was approximately 1,200 times more compared to the income of the average fast food employees in the same year (Ruetschlin 2014). Such income disparity can be explained with two essential factors: high payments made to CEOs and poverty-level income received by average employees in the industry (Pulok 2012). In the table below, specific information is presented about the Gini Index, which is a standard measure of family income disparity in a country. The data is provided by the CIA, according to which the country that ranks highest in terms of income inequality is South Africa with a Gini Index of 65.0, while Sweden ranks first with a Gini Index of 23.0 (Vogel 2012). These results provide important implications into the widening gap of the richest and poorest citizens around the world. Table 1: Income Disparity in Different Countries, 2012 Overall RankCountryGini Index 1Sweden23.0 5Norway25.0 13 Germany27.0 46United Kingdom34.0 58India36.8 62Japan37.6 85Russia42.0 92Iran44.5 95United States45.0 119Mexico51.7 135South Africa65.0 Furthermore, it has been argued that the wealth of the 1% richest persons in the world amounts to approximately ?60.88tn (Wearden 2014). This is almost 65 times as much as the amount of the poorest half across the world. It has been presented evidence that over the past several decades, the richest citizens have gained adequate political influence so as to turn main policies in their favour (Auten et al. 2013). According to Wearden (2014), tax rates applicable to the richest citizens have fallen in many countries. Since the 1980s, income inequality has progressively increased, as approximately 70% of the global population tend to live in countries with extensively expressed disparity in terms of income (Herzer and Nunnenkamp 2013). Opinion polls conducted in different countries, such as the United States, the United Kingdom, India and South Africa, showed a trend that most citizens in each country hold the belief that the wealthiest individuals exert extensive social and political influence (Xu and Garand 2010). INTERCONNECTED RISKS The global risk of severe income disparity is linked with other interconnected risks, according to the WEF report. As the WEF has indicated, the widening income gap presents a threat to the economic and social stability globally (Global Risks 2012). Therefore, it can be argued that severe income disparity is closely linked with other risks, such as inappropriate governance, persistent crime and corrupt practices, food insecurity, chronic diseases, and terrorism (Fisher et al. 2013). One of the co-authors of the Risks report has stated that if the problem of income disparity remains unresolved, this would lead to greater problems with the other interconnected risks. Cassette et al. (2012) have argued that if absolute poverty is eliminated, this would significantly help global policymakers to address the issue of severe income disparity. In this situation, wealth could be used to increase the living standards of citizens around the world. Moreover, the problem of income inequality is connected to the process of globalisation in the sense that even though the world tries to stay together, it actually is growing apart (Tregenna and Tsela 2012). This problem has become quite persistent after the global financial crisis, especially in the United States, which has been identified as 45th in the world for presenting a wide gap between the richest and poorest citizens (Vogel 2012). The minimum wages received by populations also increase the risk of such evident income divisions because of concentrating more wealth into CEOs of organisations than in the hands of average employees. When access to education and health care is limited, this obviously increases the risk of income disparity because of the gap that is created between those who can afford such services and others who cannot (Cassette et al. 2012). The lack of equal opportunities for professional development of all citizens represents another interconnected risk. It can be concluded that the risks that are mostly associated with severe income disparity are macroeconomic in nature, such as fiscal crises and structural unemployment (Chang et al. 2013). The failure of global governance structures emerges as the most central risk contributing to income inequality. These interconnections between risks provide important insights into the available transmission channels between them (Wearden 2014). SUGGESTIONS FOR IMPROVEMENT The leaders gathered at the WEF should support progressive taxation. They should be also encouraged to avoid any practice that may lead to a situation where they use their high income to obtain political favours (Baldil 2013). As part of the broad strategy to mitigate such global risk identified by the WEF, it is important to respect the democratic will of all other citizens who are not considered rich. Another strategy for improvement is associated with making public all investments in organisations (Leibbrandt et al. 2012). Income inequality can be lowered in situations when more opportunity and growth is created. Global leaders should work on the emergence of an equality agenda. CONCLUSION This paper has provided an exploration of the global risk of severe income disparity, as identified by the WEF. This risk has been indicated as one of the most persistent global risks threatening social and economic stability across the world (Baldil 2013). The focus of the paper was on describing systemic dimensions of the problem of income disparity. It was argued that the problem of income inequality is present in both developed and emerging economies. Another argument introduced in the paper referred to the association of income disparity with political influence. There was a discussion of minimum quality of life, which has been initiated in the United States (Cassette et al. 2012). The income disparity gap has been presented as wider in emerging economies. Moreover, the paper focused on Milanovic’s different concepts of inequality in order to provide a relevant basis for measuring income disparity globally (Milanovic 1998). Specific interconnected risks along with suggestions for improvement have been presented in this report. The major interconnected risk has been identified as the failure of global governance (Xu and Garand 2010). In conclusion, global leaders should constantly work on implementing adequate solutions to tackle the problem of severe income disparity. REFERENCES Armour, P., Burkauser, R. V. and Larrimore, J. (2013). ‘Deconstructing Income and Income Inequality Measures: A Crosswalk from Market Income to Comprehensive Income’. American Economic Review, vol. 103(3), pp. 173-177. Auten, G., Gee, G. and Turner, N. (2013). ‘New Perspectives on Income Mobility and Inequality’. National Tax Journal, vol. 66(4), pp. 893-912. Baldil, G. (2013). ‘Physical and Human Capital Accumulation and the Evolution of Income and Inequality’. Journal of Economic Development, vol. 38(3), pp. 57-83. Bergh, A. and Nilsson, T. (2014). ‘When More Poor Means Less Poverty: On Income Inequality and Purchasing Power’. Southern Economic Journal, vol. 81(1), pp. 232-246. Berveno, O. V. (2014). ‘Influence of an Extreme Inequality of Income upon the Life Quality’. Problems of Economy, (1), pp. 304-308. Burz, R. D. and Boldea, B. I. (2012). ‘Sustainability of Economic Growth and Inequality in Incomes Distribution’. Annals of the University of Oradea, Economic Science Series, vol. 21(1), pp. 249-254. Cassette, A., Fleury, N. and Petit, S. (2012). ‘Income Inequalities and International Trade in Goods and Services: Short- and Long-Run Evidence’. International Trade Journal, vol. 26(3), pp. 223-254. Chang, J., Liu, C. and Hung, H. (2013). ‘Does Performance-Based Compensation Boost Economic Growth or Lead to More Income InequalityDoes Performance-Based Compensation Boost Economic Growth or Lead to More Income Inequality?’ Economic Record, vol. 89(284), pp. 72-82. Fisher, J. D., Johnson, D. S. and Smeeding, T. M. (2013). ‘Measuring the Trends in Inequality of Individuals and Families: Income and Consumption’. American Economic Review, vol. 103(3), pp. 184-188. Global Risks 2012, Seventh Edition (2012). World Economic Forum. Geneva, Switzerland. Grabka, M. M. and Goebel, J. (2014). ‘Reduction in Income Inequality Faltering’. DIW Economic Bulletin, vol. 4(3), pp. 16-25. Herzer, D. and Nunnenkamp, P. (2013). ‘Inward and Outward FDI and Income Inequality: Evidence from Europe’. Review of World Economics, vol. 149(2), pp. 395-422. Law, S. H., Tan, H. B. and Azman-Saini, W. N. (2014). ‘Financial Development and Income Inequality at Different Levels of Institutional Quality’. Emerging Markets Finance Trade, vol. 50, pp. 21-33. Leibbrandt, M., Finn, A. and Woolard, I. (2012). ‘Describing and Decomposing Post-Apartheid Income Inequality in South Africa’. Development South Africa, vol. 29(1), pp. 19-34. Lin, Y. C., Huang, H. C. and Yeh, C. C. (2014). ‘Inequality-Growth Nexus along the Development Process’. Studies in Nonlinear Dynamics Econometrics, vol. 18(3), pp. 237-252. Milanovic, B. (1998). Income, Inequality, and Poverty during the Transition from Planned to Market Economy. Washington: The World Bank. Pulok, M. H. (2012). ‘Revisiting Health and Income Inequality Relationship: Evidence from Developing Countries’. Journal of Economic Cooperation and Development, vol. 33(4), pp. 25-61. Ruetschlin, C. (2014). Fast Food Failure: How CEO-to-Worker Pay Disparity Undermines the Industry and the Overall Economy [online]. Demos Organization. Available at: http://www.demos.org/publication/fast-food-failure-how-ceo-worker-pay-disparity-undermines-industry-and-overall-economy [Accessed: 20 August 2014]. Schneider, M. P. (2013). ‘Illustrating the Implications of How Inequality is Measured: Decomposing Earnings Inequality by Race and Gender’. Journal of Labour Research, vol. 34(4), pp. 476-514. Shin, K. and Shin, D. (2013). ‘New Evidence on Determinants of Income Inequality’. Journal of Economic Theory and Econometrics, vol. 24(2), pp. 125-162. Tregenna, F. and Tsela, M. (2012). ‘Inequality in South Africa: The Distribution of Income, Expenditure and Earnings’. South African Ministry of Cooperative Governance and Traditional Affairs, vol. 29(1), pp. 35-61. Vogel, R. D. (2012). Civic Revolution: Targeting the Dictatorship of Wealth [online]. Available at: http://combatingglobalization.com/articles/Targeting_the_Dictatorship_of_Wealth.html [Accessed: 20 August 2014]. Wearden, G. (2014). Oxfam: 85 Richest People as Wealthy as Poorest Half of the World [online]. The Guardian. Available at: http://www.theguardian.com/business/2014/jan/20/oxfam-85-richest-people-half-of-the-world [Accessed: 20 August 2014]. Xu, P. and Garand, J. C. (2010). ‘Economic Context and Americans’ Perceptions of Income Inequality’. Social Science Quarterly, vol. 91(5), pp. 1220-1241. How to cite Severe income disparity: A review of the WEF’s global risk, Essay examples

Business Law Partnership Act 1958

Question: Describe about the Business Law for Partnership Act 1958. Answer: 1. Type of business organisation: The type of business they are operating is a partnership firm. They have inherited the firm from their Great Grandfather. Their Great Grandfather was the only owner and was running the same concern as a sole trader. Since they have been running it as a going concern, they may legally not have changed the nature of the firm under the Australian Securities and Investments Commission. But their profit sharing makes it a partnership firm by nature. It is clearly mentioned that they share profits equally. Hence they are practically running a partnership firm under the guise of a sole trader firm. They need to change the nature of the business and get the firm registered under the Partnership Act 1958. They need to have a Tax File Number and follow all the stipulate laid down in the website of the Australian Government, Department of Industry, Innovation and Science. The stipulate of law clearly mentions that one is required to change the business structure if the owners wish to move from a sole trader format to partnership format[1]. Business structure: The current business structure that Dilara and Aysha are following is not as per the law. They need to amend their structure and then continue with the selling activity. Since Polat wishes to buy a part of the vinery, it means he will become a part owner of the establishment. In other words he will also be a partner in the organisation along with Dilara and Aysha. The percentage ownership will depend on the amount invested by him. This calculation is fairly simple. The net worth of the vinery as of today, under the management of Dilara and Aysha needs to be established. The amount Polat wishes to invest will be split into two parts. One part will be the amount he wishes to pay for part ownership of the vinery and the other part is future investment in the vinery for its restoration of working capital, modernisation and expansion of operations. Polats share of ownership will be the percentage of money he has invested in the vinery, vis-a-vis the net worth of the concern prior to his i nvestment. The new valuation will be a sum total of the older net worth and the investment made by Polat in the concern. The share of profits may be entirely different as Polat will be an investor and a working partner. He will work as the chief wine maker in the concern. On the contrary, Dilara and Aysha will continue to be sleeping partners as their job role in the concern is unknown[2]. All this cannot be achieved as long as the concern remains to be a sole trader concern. Dilara and Aysha first need to transform their concern from sole trader to partnership. This is relatively easy as per the Australian laws. The Australian Business Number(ABN) is a unique number that is allocated to all businesses, be it sole trader, or partnership or company or trust. The vinery understandably has an existing ABN. This is an assumption since it is an going concern and must have had complied to the law till date. For changing the business structure, Dilara and Aysha first needs to cancel the existing ABN of the vinery and apply for a new ABN. The personal details of the partners along with the details of the new partner need to be updated in the system of the Australian Taxation Office and Australian Securities and Investment Commission. The ABN details can be changed with the ATO through online transaction. This enables trouble free transition from one form to another. They need to change the nature of the business and get the firm registered under the Partnership Act 1958. They need to have a Tax File Number and follow all the stipulate laid down in the website of the Australian Government, Department of Industry, Innovation and Science. The stipulate of law clearly mentions that one is required to change the business structure if the owners wish to move from a sole trader format to partnership format. The new business structure needs to be as per the requirements mentioned in the Australian taxation website. We assume that the going concern had a registration under the GST. Hence it need not be done once again. There needs to be a corporate governance plan in place that includes all the three partners. There will be changes in the relevant tax structure and for that Dilara and Aysha need to visit a chartered accountant with relevant experience in tax laws. Notification to the government departments need to be done regarding the changes. Advisory services need to be solicited by Dilara and Aysha for this change. They need to consult the website of Australian government for this purpose[3]. In the final analysis it is seen that Dilara and Aysha need to consider another form of business, which is partnership form of business. Rights of a shareholder/member: Leo has been a share holder of the company and is the non-executive director after purchase of the share value of $500000. The case in general seems to be one of gross discrimination. Leo is entitled to certain rights and privileges as the non-executive director of the company. Hence he is not employed by the company, but is a part owner as he has bought shares of the company. However, as per the Corporations Act 2001, all executive and non-executive directors are required to comply with the legal requirements. Non-executive directors do face some challenges in operations vis-a-vis executive directors as they are non-employees and only shareholders. Non-executive directors have the right to attend the general body meetings of the companies and also enjoy voting rights. They can vote for or against motions being debated in the Annual General Body Meeting. Also they have the power to inspect the book of accounts and object to or ask questions on the conduct of the company affairs. The company, Thomas The Tank Engine Pty Ltd, made a 300% increase in revenue. The understanding derived from this information is that it must have also had made substantial increase in the profits. However, the profit information has not been shared in the case and hence it is difficult to comment on the same. However, the assumption is not base less, as the case reports the Executive directors vote themselves substantial rise and bonuses. Moreover, they decide to lease themselves individual expensive cars at the cost of the company. The Corporation Act 2001 spells out the rights of the shareholders and/or members in the dividend of the company. However, Amanda and Ruby cunningly has not declared any dividend. Hence, there is a scope of an argument that since no dividend has been declared, the shareholders and members are entitled to no payouts. Leo, being a non-executive director falls in the category of shareholders whilst deciding the dividend payout. Hence, as per the norms, he has neither received dividend nor any other payout. A shareholder will not have the right to a separate board representation. But they will have voting rights on basis of their shareholding. They can exercise their powers if they feel their commercial interests being marginalised. This is also a part of Leos case, wherein, the company has benefitted in capital allotment, from the sum invested by him through purchase of shares earlier in time. The same capital has resulted in production and increase of revenue due to both, employee cont ribution and shareholder capital. Employee contribution has been handsomely rewarded as the Executive Directors have got a raise, a bonus and luxury car at company expense. But the reward to the investor was denied. The capital that helped create the wealth (300% increase in turnover is no doubt wealth creation) has been overlooked. It is pertinent for Leo to understand that his share of the capital was a cause for the company performance. Hence he needs to be rewarded. Enjoyment of share of profits is a matter of right for a shareholder. Amanda and Ruby are the executive directors of the company. In other words they are the directors within the ambit of definition of director by the Corporation Act 2001. The duties of the directors must be to act in good faith. Since Good Faith cannot be legally proven or enforced, it is left to the good judgement of the directors. However, in the recent times courts have identified conducts that have been done in bad faith. The matter is debatable and takes an adjudication authority to specify the deed. The good faith should be towards the genuine interest of the company and not as favouritism towards self or anyone else to receive improper gains. The act specifies that any deed done in an improper manner is invalid and may require compensation to be paid by the company. One assumption that we started off with needs to be reiterated again. It is hoped, that, Amanda and Ruby have not cooked up the books of accounts to show meagre or no profits for the year, in order to justify the non-declaration of dividends. However, if they have done so, still the dividend payout strategy can be questioned for the huge rise in salary and bonus and luxury car lease for the directors. What contribution resulted in that is the question. Leo was removed as the non-executive director of the company for questioning the dividend policy of the company. The questioning of such policy in the Annual General Meeting, whether for clarification of doubts or for discrepancies, is a matter of right of shareholders/members. Leo only exercised the rights vested upon him by law. The impeachment due to exercising ones right is not as per principles of natural justice. The case does not specify how Leo was removed, so procedural lapse on part of the directors cannot be specified. We assume that the procedure was followed since as per the Corporations Act, removal of a non-executive director from the board in much easier in case of a private limited company as compared to a public company. The advice to Leo is to file a complaint under the Corporations Act contravention as per contravention to receive benefit without member approval. The impeachment of Leo also can be clubbed under the suit. The justice that will be sought will be to restore his candidature as non-executive director as his shares are still there in the company. He was wrongfully impeached for exercising his rights of questioning the dividend decision. He was not given a share of the profits which was his right[4]. 3. Liability of the directors of TACH Ltd: The company TACH Ltd is a public company that has been functional in the food sector producing coffee beans. It is listed on the stock exchange and hence is a public company. The company has two executive and one non-executive director. The non-executive director is a partner of one Executive Director. The situation is one of family owned business, though it is registered ad a public company. The other director also happens to be the CFO of the company and manages all the finances. Reading the case, it seems, the other Executive Director does not understand much about finances, or does not care much about activities of the CFO. The gross callousness on part of Vanessa not to read the financial statement before all important board meeting can be read in the case. Erol made a mistake and the same went unheeded by Vanessa who should have audited the work of Erol. Why Erol made the mistake is still unknown. It may have had been an inadvertent error or a purposeful one. The failure on part of both to represent the correct health of the company cannot be overlooked. The board will never go into the depths of calculation of the profit and loss and run a check on the directors report. The board decides the payout to the directors basis their responsibilities and that must have been the case for Erol and Vanessa too. They were paid to do a correct job professionally and not misguide the board. The liabilities of the directors of TACH are to accept complete responsibility of the misrepresentation of data that happened in the Board meeting, due to which wrong management decision was taken which led to the insolvency of the company. The Corporations Act 2001 clearly spells out the general duties of the directors and officers of the company. The act states that care a diligence has to be exercised while conducting business and carrying out the duties on behalf of the company. The care a diligence has to be exercised like a reasonable person. Section 180 draws out the requirements very clearly. It also states that the directors and officers who make business decisions should act as mentioned above and should be considered equivalent to their job duties. The aspects the directors need to consider are to make judgement in good faith and without personal material interest in the decisions. They should be well informed before taking and recommending decisions. The judgements should be rational in the interest of the corporation. Also the section 181 specifies that care and diligence should be accorded in all business decisions that are taken by the directors[5]. We can see that Erol and Vanessa violated all these. They, simply put, did not carry out their duties as desired. In other words, they did not do justice to the chairs they were holding and did not act in a professional manner. They were casual and nonchalant in their conduct. Corporation Act: There was gross breach of Corporations Act under sections 180 and 181 as conducted by Vanessa and Erol. The provisions of the act specify that this failure to conduct in a proper manner expose the two directors to only Civil Liabilities only as per Section 1317E of the Civil Penalty Provision. The directors can be booked by the board under the Civil Liabilities for the debacle under sections 180 and 181 amounting to unprofessional conduct and gross negligence of duties[6]. 4. Auditors report: An auditor is a person who checks the book of accounts and financial statement of a particular concern. The checked books of accounts are certified by the auditors and are called Audited documents. These financial results are then published for mass consumption. The results portrayed in the audited results are considered to be authentic since they have been checked thoroughly by the auditors and then certified as correct. This certification is the responsibility which the auditors must owe to[7]. However, an auditors report can also be wrong! The debate that has rocked the commercial world is that, who then is responsible for the harm caused due to a wrong certification by the auditors. Prima facie the answer seems to that, if mistake is of the auditors, then the responsibility also lies on the auditors. But the general understanding is that the auditors responsibilities are always limited to the client. The third parties that use the reports are understandably out of the purview of the responsibility matrix of the auditors. The investors, creditors, borrowers, and even the clients of a company depend on the audited financial results of the company for their business decisions as to whether or not to invest, divest, lend or place orders with the company. In case of negligence on part of auditors resulting in wrong financial statements, the third party investor, borrower, client, etc may be adversely affected by making a wrong investment basis a wrong report. Do the auditors have any responsibility towards the inadvertent mistake the company makes believing the audited results of the auditors client? This is the question of the debate that spills two schools of thoughts. One that says the auditors liability is limited to the clients whom they serve. And the other that believes that morally the responsibility goes further wherein the auditor is responsible for any decision taken on the basis of the audited reports. I agree to the fact that auditors liability should extend from just the immediate client to anybody who takes decisions based on the audited results, since they are certified to be true. In Australia, the House of Lords has limited the extent to which auditors are liable for the third parties. However, the view of the Australian courts on the subject is awaited. The viewpoints have been elaborated basis their bandwidth. The narrowest possible view has been where the auditors are responsible of the clients only. As per law of tort, applying the privy test, there is not liability to third parties. It has been argued considerably that the liability should not be beyond the aspects of law. However, arguments that there are possibilities beyond the law of tort have been established. This has been argued as the duty of care. Reasonable foresee-ability test as applied has been directed towards the error of overlooking a financial outcome in the correct audit perspective. The argument against this test is that it results in too broad a view and cannot be specified to a particular result. This was initially adopted in UK, but owing to its erroneous nature has been dropped from there too. The other test was of actual knowledge that the audited results will be used by another concern, like an economic development council that will accord certain advantages or concession to a company due to contents of its balance sheet. The test opined that such prior knowledge no more limits the liabilities of the auditors to the client. They are now responsible for parties beyond. The third test is the specific knowledge of who will use the audited results for decision making. This provides even more liability not only towards the client but also towards the party who will use it. This liability follows the principles of natural justice, since the knowledge of the future user of the data was very much available with the auditor before the publication of the results. The other test has been the foresee-ability with proximity of the auditor with the user of the knowledge. The arguments narrow down to even more specifics of the matter. The misrepresentation of facts by the companies and the inability of the auditors to consider them, adds to the line of defence for the third parties towards auditors and any misgivings caused due to wrong information shared by the auditors. The concept should govern all parties other than the immediate clients of the auditors. The audit firms have been busy reframing their disclaimers to face save due to negligent report publication[8]. Bibliography: Asic. (2016). Members of a company. Retrieved 10 22, 2016, from ASIC: https://asic.gov.au/for-business/running-a-company/members-of-a-company/ Ato. (2016). Australian business number (ABN). Retrieved October 23, 2016, from Ato: https://www.ato.gov.au/Business/International-tax-for-business/Foreign-residents-doing-business-in-Australia/Australian-business-number-(ABN)/ Auasb. (2013). Auditors Report. Retrieved October 23, 2016, from Auasb: https://www.auasb.gov.au/admin/file/content102/c3/Jul13_Compiled_Auditing_Standard_ASA_700.pdf Companydirectors. (2013). Role of CEO MD. Retrieved 10 22, 2016, from Australian Institute of Company Directors: https://www.companydirectors.com.au/director-resource-centre/director-qa/roles-duties-and-responsibilities?page=2 CorporationAct. (2001). Corporations Act 2001. Canberra: Attorney-Generals Department. Davies, M. (1991). The Liabilities of Auditors to Third Parties in Negligence. UNSW Law Journal , 171-197. LegalVision. (2015). What are the rights and liabilities of a shareholder in a company? Retrieved 10 22, 2016, from Legal Vision: https://legalvision.com.au/rights-liabilities-shareholder-company/ Partnership. (2016). Retrieved 10 22, 2016, from Australian Government - Business: https://www.business.gov.au/Info/Plan-and-Start/Start-your-business/Business-structure/Business-structures-and-types/Partnership