Texco Limited Company Case Study - Law Assignment Help

Assignment Task

Task

Texco Limited is a private company incorporated in Hong Kong (the "company"). Diana is the auditor of the company and earlier this month, she discovered invoices with altered dates. However, Diana ignored these findings and took no action. In fact, the executive director had made the price payable on the purchase of raw materials before the end of the financial year to be included in the outgoings for the next year. This resulted in the company paying dividends out of capital. Jean who is an existing shareholder of the company saw the huge dividends declared and subscribed for additional shares. Jean later found out that in fact the company was insolvent. Diana does not know of Jean's existence. 
 

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