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8 Pages • Essays / Projects • Year Uploaded: 2023
ACC3702 Discussion 2 Question 1 and the complete essay. Question 1 “Limited liability does not reduce the risk of business failure. It only transfers the risk of business failure to creditors.” Discuss how limited liability transfers the risk of business to creditors. Analyse with a critical viewpoint whether sections 238 and 239 of the IRDA provide adequate protection to these creditors. In your analysis of section 238, include a brief summary of the facts of Tendcare Medical Group Holdings v Gong Ruizhong [2021] SGHC 80. In your analysis of section 239, include a discussion on the brief history of the provision and whether you think the section has, in the spirit of creditor protection, become too harsh on directors who try to salvage the business of the company when the company is undergoing financial difficulty.
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