Business and Company Law

Business and Company Law

How a director may invalidate a capacity contract signed when employed without meeting the required standards set by the employment board

The board of directors who wishes to employ a director off a particular company is required by the law to set the qualifications of personnel who might be interested with such a position.  However, the board through closed interviews may employ director who may not have met the requirements of the position. For example, a director appointed for the Australian Securities and Investments Commission (A.S.I.C) who will be in charge of operations regarding safeguarding the profits of the company, controlling debts and protection of investors through shares. Following the arguments of Harvey (2013), after the employment the director will have to signal contract within her capacity of acceptance of the terms given by the board and that of the company as well as to agree to abide to the conditions of work she will be undertaking.Business and Company Law However, the director, by signing the contract will have violated the contract within her capacity since she did not meet the requirement of her positions. According to Kwasniewski (2013), a contract signed within a particular position between the employer and employee should mean that the employee has met the qualifications of the post as directed from the employment advertisements.

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Kwansniewski, B. (2013). Employee Termination “dos” and “don’ts”. Carters Professional Corporation.308, 1-7

Mycyk, A. & Trenkwalder, J. (2012). Duties and responsibilities of Directors. CMC Legal Service,116-120