Trump Developments Ltd | Corporations Act

Added on - 19 Feb 2020

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Running head: CORPORATE LAWCorporate LawName of the studentName of the universityAuthor note
1CORPORATE LAWISSUEDo the directors of the company, Trump Developments Ltd, have any defences against an actionby the Australian Securities and Investment (ASIC) or the Australian securities Exchange(ASX)?RULEThe facts of the case make it clear that the directors of the company, Trump Developments Ltd,have breached the provisions of the Corporations Act, 2001.Section 180 of the Corporations Act, 2001 stipulates that a director or other officer of a companymust act and use his powers in respect of his position with reasonable diligence and care.1The directors of the company failed to do so and ran into massive overruns and exhausted all ofthe company’s resources. They also failed to ensure that the developmental works in USA andthe Carribean were conducted under a safe environment. Their failure led to the casualty of 3workmen.Section 181 of the Corporations Act, 2001 lays down that a director of a company shoulddischarge their duties and use their powers in respect of the company for a purpose laid down bythe constitution of the company and in good faith keeping the best interests of the company.21Austlii(2017). Retrieved 1 September 2017, fromhttp://www.austlii.edu.au/cgi-bin/viewdoc/au/legis/cth/consol_act/ca2001172/s180.html2Austlii(2017). Retrieved 1 September 2017, fromhttp://www.austlii.edu.au/cgi-bin/viewdoc/au/legis/cth/consol_act/ca2001172/s181.html
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