Breach of Director's Duties under Corporations Act 2001

Running head: LAW 202
LAW 202
Name of Student
Name of University
Author Note

1LAW 202
Table of Contents
Issue.................................................................................................................................................2
Rule..................................................................................................................................................2
Application......................................................................................................................................4
Conclusion.......................................................................................................................................6
Reference.........................................................................................................................................8

2LAW 202
Issue
Two issues can be found to be present in this case. Both these issues relate to the
directors’ duties mentioned under the provisions of the Corporations Act 2001 (Cth). the first
issue is to find if there was any breach of the duties of a director by mentioned under the
Corporations Act. The second issue is to find whether any remedy available to DIG under the
provisions of the Act against Adoni and the company formed by Adoni named Adoni Mining Pty
Ltd (AM).
Rule
The director’s duties towards his company have been discussed in various sections of the
Corporations Act 2001. The general duties are also known as the fiduciary duties as the duties of
a director can be seen to be based on faith, respect and mutual liability (Huebner and Klein
2015).
There are four main categories under which the duties of a director are mentioned under
the provisions of the Corporations Act 2001. The four fiduciaries duties of a director towards his
company are-
 Duty of acting in due care and diligence
 Duty to act in good faith for the best interest of interest
 Duty to not misuse his position as a director of the company for his personal benefit or
the benefit of someone else that can be detrimental to the company
 Duty to not misuse the private information of the company for his own benefit or the
benefit of someone else that can be detrimental to the company (Home 2017).