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LAW7057 Corporate Governance

tag 0 Download 10 Pages / 2,266 Words tag 11-11-2020



Essentially, the assignment is a research essay about a contemporary corporate governance issue,i.e. sexual harassment and assault in the workplace and how these issues are managed. The purposeof setting such a topic is to provide students an opportunity to ‘walk in the shoes of’ senior management and see how it feels to have to deal with complex issues. Because the issues are complex and multi-faceted,

Fox Productions Pty Ltd produce print, TV and online advertisements. The company has been operating since 1975.

The founder of the company, Eddie Sandow, retired as CEO at the end of 2016. The new CEO, Gabrielle Brown is a very competent manager who had previously worked in television production.

There is a small board consisting of Gabrielle, Tom Gleeson (accountant), Silvia Clapper (production manager) and Bill Batchley (the company’s lawyer who works in the practice, Batchley Thompson).

Currently, there are 63 employees.

One day in April 2017, Gabrielle is approached by the Human Resources Manager, Sally Bentham who is very worried. Sally had received a complaint from a model employed by the company. The model known as ‘Employee X’ claims that one of the photographers, Parvey Lichtenstein, had been making inappropriate comments and touching her inappropriately. According to Employee X, Parvey threatened her with physical harm when she asked him to stop his behavior. Apparently this behaviour had continued for a period of 5 months.

Sally and Gabrielle met with Parvey and put the allegations to him. He said that he had been working at the company since 1975 and he had always acted this way towards the models. He refused to accept that his behaviour was wrong. At the end of the meeting, Gabrielle dismissed Parvey for breaching his employment contract and the company’s Code of Conduct.

Shortly afterwards the local newspaper published an interview with Employee X who stated that she had asked a lawyer to assist her to sue Fox Productions.

Gabrielle calls an urgent meeting of the company’s board. Gabrielle asks Sally to attend the Board meeting to discuss the issue. Sally tells the board that Parvey has in fact been sexually harassing and assaulting women in the workplace for many years and that Eddie Sandow had just turned a blind eye to the complaints. Sally said she expects to receive many more complaints, if not legal claims, from present and past female employees making similar allegations about Parvey’s conduct.


  1. Assume you are Gabrielle what action would you recommend the company take in this situation?
  1. Is there anything that the company can do to manage the public relations?

  2. Based on these facts, do you think there is any evidence of a breach of directors’ duties general law or statutory? Hint: are former directors subject to directors’ duties?
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