Corporation Act - Breach of Duties by Director Tony Stark

RUNNING HEAD: CORPORATION ACT
Corporation Act
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CORPORATION ACT
Reply to question (a):
Tony Stark was the director of the organisation Marvel Universe Pty Ltd and has breached
several duties which are stated as follows:
An opportunity was taken as it was introduced by Dr Thanos, the main query arises here is
whether this belongs to the breaching of noble faith or he should have disclosed?
As he was the director of the new organisation Endgame Pty Ltd, the query arises here is whether
it should be disclosed or not?
Another concern regarding the provided case is whether the organisation’s information was used
improperly as he contacted with several clients of the organisation Marvel Universe Pty Ltd to
provide the benefit to his new organisation of Endgame Pty Ltd.
According to the general law regarding the conflict of interest, the fiduciary Directors should not
place themselves in the situation of conflict where there is a conflict in their interest along with
the responsibility to act for the organisation’s interest. According to the Corporation Act, 2001 s
181 and s 183 shows about maintaining noble faith and using the proper information of the
organisation.
Apart from this section 191 (2) (a) of the CA 2001 explain the different exceptions that using of
the unfair way or method where the organisation of the company can reject it in the first instance
where it creates a chance for not disclosing it in relation to the interest as it is stated in the case
of Peso Silver mines Ltd vs copper. According to the general rule of the conflict of interest, it has
been stated that a person can act as a director of two organisations that are competing until the
individual does not perform breaching of any duty to any one of the organisation. This statement
can be supported by the case study of London and Mashonaland Exploration co Ltd vs New

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CORPORATION ACT
Mashonaland Exploration co Ltd where it provides the authority for computing with the
organisation without being disclosed about their task or performance.
There should be confidentiality in the field of clients contact, and they should not be disclosed to
any other party as it is well explained in s183 of the CA 2001. This is well explained in the case
study of Faccend chicken Ltd vs Fowler. In the above mentioned case there is a performance of
breaching the noble faith under section 180 of the CA 2001 as the director of the organisation
subsisted the organisation Marvel universe Pty Ltd.
In the said scenario it has been observed that Tony stark as the director went for the opportunity
of the business which was being not accepted by the organisation Marvel universe due to the
insufficient fund of the company as they do not carry any intention for purchasing the software at
that particular situation. This scenario is same according to the case study of Peso Silver mines
vs Copper. It is seen that Tony is very clear in this metal according to the exception stated in
section 191 of the CA 2001 which helped to clear out that Tony e was a great failure in
disclosing the interest of the organisation. It has been assumed that Tony was only the director
and he was not appointed as the executive director (where it has been explained that the
executive directors will not be able to join any other competing organisation) of the organisation
in-game PTV limited which can be seen as a competing organisation of Marvel universe. This
can be related according to the facts of London, and Mashonaland exploration co limited where
the director has not performed any breaching of duty, as he was the director of the competing
company and Tony Stark can continue to perform his task in good faith for each organisation.
As he developed a contact with the clients of the organisation Marvel universe pty limited, Hindi
situation it has been observed that Tony Stark has breached section 184 (1) (2) (3) and he used