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Business Law Questions and Answers PDF 2023

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Monitor Corporate Governance Activities (FNSACC604)

   

Added on  2020-04-15

Business Law Questions and Answers PDF 2023

   

Monitor Corporate Governance Activities (FNSACC604)

   Added on 2020-04-15

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Running head: BUSINESS LAWBusiness lawName of the StudentName of the UniversityAuthor Note
Business Law Questions and Answers PDF 2023_1
BUSINESS LAW1Table of ContentsQuestion 1..........................................................................................................................2Question 2..........................................................................................................................4Question 3..........................................................................................................................7Question 4..........................................................................................................................9Question 5.......................................................................................................................10References.......................................................................................................................13
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BUSINESS LAW2Question 1Issue The question which has to be analyzed in relation to the given case study is that has theduties of directors as provided by common law in form of equity and fiduciary dutiesalong with the statutory duties set out by the Corporation Act 2001 (Cth) (CA) beenbreached by High Rise development limited’s directors. Law Duties are set out by the CA through s 180 to 184 which are applicable on all officersand directors of organizations operating in Australia. A person who has the right tomake decisions in relation to the organization or who hold the position of directors areconsidered as its directors under section 9 of the CA. Under the provisions set out by section 180 (1) in the CA it is the duty of all directors toutilize the skill and diligence possessed by them in the management of the day to dayactivities of the company. It is not upon the directors to state that they have skillfully anddiligently taken a decision in relation to the company and therefore their decision isanalyzed by the court. The courts have been provided with a specific test under section180(1) of the CA. The test is known as the objective test and is used to analyze thedecisions of the directors. The principles of the test state that an imaginary reasonabledirector is placed in the shoes of the original director and then if the imaginary directorwould have taken the same course of action the original director passes the test and ifnot the test is not cleared by the directors.
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BUSINESS LAW3Further the directors have been imposed with a duty to act in the best interest of anyorganization they work for as directors. This duty has been imposed on the directorsthrough the application of section 181 of the CA. the directors of the company must actin a proper purpose and in good faith while managing the affairs of the company. Thisduty is also provided in the fiduciary and equitable duties owed by directors to thecompany. It is the duty of directors under section 182 of the CA to not make secret profit on thecost of the company while using the position which is held by them in the company. Thisduty also corresponds to the equitable and fiduciary duty to not have any conflict ofinterest with the interest of the company. There is an obligation imposed on thedirectors to go for the profit of the organization other than personal profit in case anysituation with conflicting interest takes place. In the same way as provided by section 182 of the CA, section 183 imposes anobligation not to use the information gained by the company for personal gains andsecure the interest of the company as a priority. This duty also corresponds to theequitable and fiduciary duty to not have any conflict of interest with the interest of thecompany.Application It has been provided in the scenario that the organization is managed by two directors.The core operations of the organization is to manage buildings. A recent deal has beenentered upon by the organization where it has been provided with the opportunity tomanage a new high rise. The organization has get into a contract for cleaning and the
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