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Business and Corporation Law Assignment | Breach of Duties

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Added on  2019-11-19

Business and Corporation Law Assignment | Breach of Duties

   Added on 2019-11-19

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Running head: BUSINESS AND CORPORATION LAWBreach of Director’s dutiesName of the student:Name of the university:Author note
Business and Corporation Law Assignment | Breach of Duties_1
1BUSINESS AND CORPORATION LAWTable of ContentsIntroduction:...............................................................................................................................2Discussion:.................................................................................................................................2Duties of the directors:...........................................................................................................3Decision of the court:.............................................................................................................4Critical analyse of decision:...................................................................................................4Other relevant section:............................................................................................................6Impact of the decision:...........................................................................................................7Conclusion:................................................................................................................................7Reference:..................................................................................................................................8
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2BUSINESS AND CORPORATION LAW Introduction:Director and outcomes of the breach by the directors base the present case on thegrounds of breach of duties. The many newspapers and channels that the growth of casesregarding the breach of director’s duties has been increased rapidly have reported it (Aroneyet al. 2015). The provision regarding the breach of director’s duties has been attracted theprovision of the Corporation Act. Several cases are pending before the various courts ofAustralia regarding the same and in this report, an attempt has been made to discuss andcritically analyse the court’s decision and responsibilities of the directors regarding one of theimportant case law named ASIC v Cassimatis [2016] FCCA 1023. Discussion:The current case is one of the most significant cases in the history of Australiaregarding the violation of the respective provisions of the Corporation Act 2001 attracts thegrounds regarding the breach of duty by the director (Barnett 2017). Directors are the mostimportant part of a company and they are eligible to take all the necessary decisionsregarding the benefit of the company (Berk et al. 2013). Therefore, it can be narrated that thedirectors should have to perform their duties in good faith and think about the benefit of thecompany. Under the Corporation Act, several sections have been mentioned where from it isclear that if any director of a company tried to gain illegal benefit or anything that harm theinterest of the shareholders, law will abstain them from doing so. The provisions mentionedunder the Corporation Act are engraved under section 180 to section 184. An allegation had been made by the ASIC against the financial giant Storm FinancialLimited that points out that the director of the company Mr. Cassimatis had breached therespected provisions of the Corporation Act 2001 and liable for the violation of the respected
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