part aa director has a duty to exercise care


Part A

A director has a duty to exercise care, skill and diligence at common law and also a statutory duty of care and diligence under s180 (1) Corporations Act 2001 (Cth) in carrying out their duties to the company they are director of. Discuss the key elements of establishing that a director has breached both this common law and statutory duty.

Part B

Consider the position of a shareholder who has become increasingly concerned that the directors of the company have diverted business (and therefore profit) away from the company. What legal options does the shareholder have in trying to make the directors stop doing this? In your answer please clearly discuss the applicable law and explain why you believe it is appropriate.

 

 

 

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Business Law and Ethics: part aa director has a duty to exercise care
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