Yasir Is a Director and the Operations Manager of Flavell

question 18

Multiple Choice

Yasir is a director and the operations manager of Flavell Rubbish Disposal Ltd.All of the financial aspects of the business are the responsibility of John, another director.Yasir heard from one of his employees that a representative from the corporation's bank was in John's office yesterday and there was a lot of shouting.Yasir asked John about it.John said that the corporation was behind in its loan payments, but that Yasir doesn't need to worry about it.John tells him that a big customer will be paying its account soon and that money will be used to bring the loan up to date.Which statement most accurately describes Yasir's legal position?

• A)Yasir complied with his duty of care by asking about the problem.
• B)Yasir has no duty of care in relation to the loan payments because that is a matter that the directors have delegated to John.
• C)Now that Yasir is on notice that there is a problem, his duty of care requires him to make sure that the customer's payment is received and applied against the loan.
• D)Yasir has no duty because the duty of care is defined by reference to a person in comparable circumstances and Yasir is not in a position to deal with the bank.
• E)Yasir must make the loan payments himself to ensure that the corporation does not go into default.

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