Coporation Law Assignment

Added on - 28 May 2020

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Running head: CORPORATION LAWBreach of Director’s dutyName of the student:Name of the university:Author note
1CORPORATION LAWTable of ContentsIntroduction:...............................................................................................................................2Discussion:.................................................................................................................................2Duties of the directors:...........................................................................................................2Court’s decision:.....................................................................................................................3Reasons:..................................................................................................................................4Conclusion:................................................................................................................................4Reference:..................................................................................................................................6
2CORPORATION LAWIntroduction:The Corporation Act 2001 regulates the act of the directors and prescribed certainprovision in case the directors have failed to perform their duties properly. Many cases arefiled in Australia on breach of director’s duties and white collar crime. The case ofCassimatis is one of them (Tills and Wills 2016). The directors of the company were allegedto infringe the provision of the Corporation Act and failed to perform the duties of a directorproperly. Considering the facts of the case, it has been proved that the directors of thecompany had failed to act prudently and they had failed to protect the interest of theshareholders.Discussion:Duties of the directors:Mr. and Mrs. Cassimatis were the directors of Storm Company and a licence holderof the Australian Financial Service. They had promoted a financial plan and requested theinvestors to invest their money in it. However, they were aware of the uncertain consequenceof the plan but did not mentioned about it for earning extra benefit. It has been alleged thatthe directors had not acted in good faith and after the financial crisis; they even did not paidback to the investors.The director’s duties have been prescribed under the Corporation Act 2001 and ithas been stated that every director should have to take all the reasonable approach or theprotection of the shareholders (Conaglen and Hill 2017). It is stated under section 180 of theCorporation Act 2001 that the directors should not do anything for their personal interest andthey are obliged to act for the interest of the company and the shareholders. According tosection 181 of the Corporation Act 2001, every director should have to comply with their
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