A BUSINESS LAW Issue. The present case of Bill and Sam

Running head: BUSINESS LAW
BUSINESS LAW
Name of Student
Name of University
Author Note

BUSINESS LAW1
Table of Contents
Issue.................................................................................................................................................2
Rules................................................................................................................................................2
Application......................................................................................................................................3

BUSINESS LAW2
Issue
The issue in the current case is whether Bill and Sam can prove that they have not been in
breach of the fiduciary duties mentioned in sections 180(1)1 and 1812 of Corporations Act.
Rules
The directors of any company owe a liability towards the company for acting in
collective interests of all members. For any breach of the duties or obligations of the directors are
seen as being held liable as per the provisions laid down by the Australian Securities &
Investment Commission3. The duties of a director have been discussed under provisions of ss
180-183 of Corporations Act 2001. The fiduciary duties are mentioned in s 180 (1) and section
181 of Act. In furtherance the defense towards breach of the fiduciary duties by directors is seen
to be provided in section 180(2) of the Act.
As per section 180(1) of Corporations Act4, the directors of a company can be seen as
being responsible for the duty of exercising their powers and their duties with specific degree of
care and due diligence as could be seen as to be expected from any person who is reasonable.
The breach of duty for a director to be acting in due diligence and care was being discussed in
the judgment of Australian Securities and Investments Commission v Flugge (No2) [2017]5.
1 Corporations Act 2001, s. 180(1)
2 Ibid, s. 181
3 Australian Securities and Investment Commission
4Corporations Act 2001,s.180(1)
5 ASIC v Flugge (No2) [2017] VSC 117