Question about Business Law 2022

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

BUSINESS LAW1
Question 1
Issue
Whether any duty has been breached by Dundee and any other directors of the Green
Energy Ltd. (GE) under the Corporations Act or under the general law.
Rule
Section 180 (1) of the Corporations Act1 says that the directors or the other officers of
any corporation needs to exercise the powers vested upon them and needs to discharge the duties
imposed on them, with due diligence and care which any reasonable person is expected of
exercising if they were the officer or director of any corporation; or if same responsibilities were
assigned to him like any officer or director. Section 180 (2) of the Corporations Act2 further says
that any director or any other officers of any corporation who is making any business judgment
needs to meet subsection (1) requirements and the duties which are equivalent to the equity and
common law. The person making the business judgment needs to make such in a good faith and
also for any proper purpose; the person should not have any kind of personal interest of material
nature in the judgment’s subject matter; give information to the other directors regarding the
judgment’s subject matter in such extent they believe reasonably of being appropriate; and
believe rationally that such judgment would be in the best interest of that corporation. As per
section 180 (3) of the Corporations Act3, the term “business judgment” means the decision of
1 Corporations Act 2001 (Cth) S.180 (1)
2 Corporations Act 2001 (Cth) S.180 (2)
3 Corporations Act 2001 (Cth) S.180 (3)

BUSINESS LAW2
taking or not taking any action related to a relevant matter to operation of the business of any
corporation.
Section 181 (1) of the Corporations Act4 says that any director or any other officers of
any corporation needs to exercise the powers vested upon them and the discharging of the duties
assigned to them in good faith and in the corporation’s best interest; and for any purpose that is
proper. Section 181 (2) of the Corporations Act5, says that, any person who has been involved in
subsection (1) contravention would be held of contravening this subsection.
In this scenario the case of Australian Securities and Investment Commission v
Cassimatis6 can be referred where the Australian Federal Court has found that a financial service
company’s directors have breached the director’s duties by not taking due diligence and care of
which any reasonable director need to have been aware reasonably of the fact that section 180 (1)
of the Corporations Act is going to be contravened.
Section 182 (1) of the Corporations Act7 says that any director, any other officer,
secretary or the employees of any corporation need not to use in an improper way the position
they have been given, for gaining any advantage for their own or for anyone else; or for causing
the corporation detriment. Section 182 (2) of the Corporations Act8, says that, any person who
has been involved in subsection (1) contravention would be held of contravening this subsection.
Section 183 (1) of the Corporations Act9, says that any director, any other officer,
secretary or the employees of any corporation by whom some information have been obtained
4 Corporations Act 2001 (Cth) S.181 (1)
5 Corporations Act 2001 (Cth) S.181 (2)
6 [2016] FCA 1023
7 Corporations Act 2001 (Cth) S.182 (1)
8 Corporations Act 2001 (Cth) S.182 (2)
9 Corporations Act 2001 (Cth) S.183 (1)