Corporate Law: Analysis of Director Duties Case Study 2018

This case study analyzes a corporate law scenario involving Fruut Pty. Ltd., focusing on the potential breaches of director duties under the Corporations Act 2001. The analysis examines the roles and responsibilities of directors Rik, Patel, and Lana, evaluating whether they fulfilled their obligations of care and diligence. The study delves into the application of the business judgment rule as a potential defense, considering the factors required for its successful application. Furthermore, the case explores the concept of a company as a separate legal entity and the implications of agency law in determining liability. The analysis concludes that Lana and Patel breached their duties, while Rik's actions were deemed compliant. Additionally, the study determines that the business judgment rule defense would likely fail for Lana and Patel. Finally, the analysis touches upon the potential liability of the company based on the actions of its directors and the application of agency law.