Robert Maxwell's Duty Of Care

In this situation the directors are the people who breached their duty of care as they should have known that, firstly they should not have used these carcinogenic chemicals for their production, as they should know that using such thinks would destroy their good will and would destroy their company. Then secondly when they thought of a strategic plan, they should have thought of the both positive and negative sides of the plan, that if this is not going to work out then what would be the situation of the company then. So by doing this they failed to do the duty of care vested on them. Also here the Director for Key Accounts disagreed to proposal made by the other director, but here view was not taken into acceptance because there was no majority for her. Also the directors who came up with these plan actually did not looked very carefully into it because they should have known that if these products are stopped from production for a certain period of then, other new companies would come into their place and take over the market. So they should have looked that it would be very tough for them to come back to the market and to establish an impact fighting with the other established companies.
One another drawback is in these companies the minority proposals are not heard. If the opinion of the Director of key …show more content…
In 1984 he bought the Daily Mirror Newspaper. In 1991 ,fell off his yacht in the Canary Island. Soon it was revealed he used his company company funds for his personal use. Then there was company known as Bishopsgate Investment Management Ltd in which Robert’s son Ian Maxwell was a director. Ian Maxwell signed share transfers to Maxwell Group from his company for no consideration. Those shares were kept for the company pension plans. When other found about this they sued Ian Maxwell and they wanted the compensation for the value of those