Company Law Final Exam

Question 1. With reference to relevant case law and legislation explain the concept of a
fiduciary? And why partners are considered to be fiduciaries?
Answer: The fiduciary relationship is said to be created when one individual lies some sort of
trust or reliance on the individual. Here the person who delegates such reliance is said to have a
fiduciary duty in order to act according of the best interests and benefits of the party. Moreover,
the individual who owes such duty is addressed as the fiduciary whereas the person to whom
such duty is owned is called as the principle. Moreover, the term fiduciary relations are related to
the one to whom any power or property is given with respect to the benefit of another party.
Mainly it is an relationship where the one person stands bound against the other in order to
exercise certain powers and rights while acting in good faith. Also, such relationship may or may
not arise out of the jural relationships. Further, the companies legislation of the country which is
the Corporations Act of 2001, does not specifically talks about such concepts but there lie some
sections which states the manner in which the directors or the other members are required to act.
Section 180 along with section 181 to 183 of the Act, sets out th general rules with regard to the
ways in which the office holders of the company must exercise their powers discharge their
duties with due diligence and care(Butzbach, 2022). Also the partners are considered to be the
fiduciaries as simply, as the whole concept of partnership and their duties are based on the
principle of fiduciary relationship. Every single partner of the firm is required to act in just and
faithful manner to each other. According to this the partners also holds the fiduciary relationship
towards the late partners legal representatives as well with regard to his interest in the
partnership property)(Ajai, 2018).
Question 2: With reference to ss 232 - 234 of the Corporations Act 2001 advise Violet if
Katherine and Rita’s conduct is oppressive and any remedies that may be available to Violet
Answer: section 232 of the act specifies the grounds for which the court cn make an order where
the conduct of the company affairs or the proposed act or omission on behalf of the company ar
either contrary to the interest of its members or are of an oppressive or unfair nature.
Moreover , the section 233 states that the court can make an order for the wound ip of the
company or its existence or modification or its regulation and the conduct. The other beinmg the
section 234 states the fact that whon can apply for the order .
Question 3. With reference to at least one relevant case, explain what is required of directors to
fulfill the standard of care and diligence in s 180 of the Corporations Act 2001
Answer: The Corporation Act, section 180 specifies the provisions regarding the due care and
diligence of the directors and other officers. It states that the directors are required to exercise
their powers and similarly must discharge their duties while applying the due care and diligence
to it which would have been applied by any reasonable prudent man while acting as the director