Image transcription text ii. Apex Ltd has been having financial difficulties. The directors of Apex are concerned that the corporation is not going to be

Image transcription text ii. Apex Ltd has been having financial difficulties. The directors of Apex are concerned
that the corporation is not going to be able to pay its obligations to creditors at the end of the month. Nevertheless, one of the directors, Alvaro, who is also the controlling shareholder, has asked the directors to declare a dividend. If you were
one of the other directors, what do your obligations require you to take into consideration in relation to the decision the hoard is being asked to make?l What
should you do? 7′. Florence Industries Ltd, based in Alberta, manufactures household cleaning products. Its president, Ebenezer, entered into negotiations with Second Class
Disposal Services Inc for a service contract. Second Class promised Ebenezer that its disposal services, which were much less expensive than those of other disposal
businesses, met all legal requirements. Ebenezer was satisfied by these assurances
and signed the contract without further investigating Second Class or its track
record.
Three months into the contract, Florence Industries was accused of dumping
industrial waste into the Bow River, contrary to the Alberta Water Resources Act,
and Ebenezer was accused of authorizing the dumping. This statute provides that an accused who exercised reasonable care to prevent the corporation from
disposing of the waste can avoid liability. Assuming that industrial waste was dumped into the Bow River on behalf of Florence Industries by Second Class, discuss whether Ebenezer or Florence
Industries can be held liable under the Act.