LEGAL ENVIRONMENT 5 Essay Example | Topics and Well Written Essays - 1000 words

LEGAL ENVIRONMENT 5 - Essay Example The law which would be discussed is that of Equal Employment opportunity. It has been pointed out that under the traditional principles of international law the activities of an overseas subsidiary which had been incorporated according to the laws of another were not subject to US legal regulation; the main reason for this being the fact that the nationality of a business entity was dependent on the country in which it had been incorporated.2 This has been boycotted by the Congress. In context of employment there have been introduced various civil law rights which include Title VII, the Age Discrimination Employment Act (ADEA) and the Americans With Disabilities Act (ADA). Extraterritorial effect has been given to these rights. It has been said that this had been provided so as to extend the reach of US employment laws which was as a result of the Supreme Court decision in Boureslan case in which Title VII to protect US citizens who were working abroad was refused, due to the international jurisdiction principle.3 The problems that tend to arise with regards to foreign company constantly insisting to hire its own nationals in US, and the main reason for this being the general knowledge which is possessed by them with regards to matters of the company. Thus there have been many claims of discrimination on the basis of national origin.4 The courts has acknowledge the FCN treaty which allows for hiring of nationals in the subsidiary of the parent company, only on certain designations5. However it has been stated by the Supreme Court that a subsidiary of a Japanese company does not come under the FCN treaty since it has been established in the US.6 By the analysis it has been clearly verified that US discrimination laws apply to foreign employers operating inside the US.7 Further it has been stated that even though the FCN treaty right allows for the hiring of nationals of parent company, there is no justification in FCN for dismissal of a US citizen because of age, which would be a discrimination.8 The courts have illustrated that right to prefer a citizen does not allow the employers to discriminate on other grounds.9 Further the right of FCN given to corporation to favor its own citizens does not make allow sexual harassment.10 However it can be clearly seen that the citizenship and national origin are in conflict, thus the right to discriminate based on FCN treaty is in conflict with discrimination on national origin which is prohibited under Title VII.11 The risks that a company takes when establishing business globally include among other things the different customs and laws, the cost of labor, taxes and other variant factors depending from country to country. The laws as have been pointed are mainly focused upon discrimination, equal pay and labor laws. The most important factor that should be taken into account by the company is to carefully research the legal position of their establishment in the country and to act accordingly. Further a company should take into minimum wages and the taxation process within the country. The possibilities of negotiation with the State are possible if it is a large corporation. The possible treaties that have been signed between the countries can be looked

Corporate Governance Essay Example | Topics and Well Written Essays - 2000 words

Corporate Governance - Essay Example Must have the capability and is responsible for individual decision-making Each director must execute calculated and independent judgment in his or her decision making process. Must be able to exercise concern, meticulousness and dexterity In the duties executed by the directors, the directors have the responsibility of exercising significant concern, dexterity and meticulousness. The aspects of ‘significant concern, dexterity and meticulousness’ are weighed according to what is generally expected from a person performing the role of a director. It is also weighed as per the experience, skill and general knowledge of the individual director (Mallin, 2010). Must never accept benefits from third parties. Benefits from third parties can give rise to conflict of interest and make an impact (or affect) on the company. Therefore, Directors must never accept such benefits. Must declare interest in proposed transaction. If a director has a personal interest in the companyâ€℠¢s proposed transaction, then the details of the particular of the interest must be declared to the other directors before the transaction or arrangement takes place. Must act honestly towards the company and must act only within the powers sanctioned to him and use the same only for purposes which would be beneficial to the organisation. Must take charge of all meetings of the Board when a Chairman is not present, and review plans, agendas and information that are sent to the Board for Board meetings and check on the meeting schedules to assure that there is enough time for discussion of all agenda items. Must serve as liaison between the independent Directors and the Chairman of the Board. Must monitor the self evaluations of the Directors in coordination with the Nominating and Corporate Governance Committee. Rights and Responsibilities of the board of directors at the Collective level Primary decision-making body of the company are the board of directors (Hopt & Wymeersch, 1997) . The collective responsibility of all aspects of the company is on the board of directors. The various activities of the company that the board of directors are responsible are: To establish and maintain the company’s motto that can otherwise be categorised as vision, mission, and values. To have full and effective control of the company To establish its structure, strategy, and risk profile by identifying and monitoring key risks and making sure that the company has the necessary control systems to manage risk within permissible levels. To ensure compliance by the company with all laws and regulations and must delegate authority to management, and monitor the execution of the company’s plans – strategic, tactical and operational moves. To responsible and accountable to all the stakeholders of the company which include, shareholder, employees, customers, clients, etc. Be transparent while communicating to the shareholders and explain on the details of resolutio ns that are to be passed at the