Fiduciary duty legal duty of directors and officers enforced by company/members
o Act in good faith and in the best interest of the company
o Use power for proper purpose
o To retain discretion
o Avoid conflict of interest
Good Faith & Be
When submitting your assignment it must be accompanied by this Assignment Attachment Form.
Please make sure that you complete all of the details correctly.
Provide ALL details requested on this form.
Use one form for each assignmen
Company Law Week Six Tutorial Question:
A) Directors duty of care and diligence
Common law duty of care, skill and diligent, when making a decision a director must not be negligent
Section 180(1)- reasonable persons test, taking into account the companys
Word Count: 2440
Question One-Susan and Rebecca are unsure if they would like to form a partnership, trust or a
company to establish their new textile business. They have both discussed how they are unable to
raise the necessary capital to set up the busi
Company law Week one Tutorial Questions (Chapters One, Two & Three):
1. Question One: Write a brief history of the development of company law and
administration in Australia.
The development of the Australian Company law, originates from England during th
Automatic Self-Cleansing Syndicate V Cunninghume- The members had no power under the
companys constitution to resolve that the company should sell its property. That power belonged to
John Shaw (Salford) Ltd V Shaw- Held: the
Topic Five- Managing Companies
A company is a separate legal entity which is artificial and needs individuals to make decisions
Organs are the mind and will of the company, the board of directors and members in the
Decisions fall into three catego