Curtin Law School BLAW5016 & MT565 Take Home Test 2 Assignment

This document presents a comprehensive analysis of a Curtin Law School assignment, specifically a take-home test for the Fundamentals of Business and Corporations Law course (BLAW5016 & MT565). The assignment delves into two key areas of corporations law. The first section examines the liability of directors regarding their duty of care and diligence, particularly in the context of foreseeable climate change risks and their impact on a company's financial well-being, including reputational harm. It references relevant legal principles, including Section 180(1) of the Corporations Act, and applies them to a case study involving a waterfront resort facing financial distress due to an algae bloom linked to climate change. The second section addresses director's liabilities in cases of insolvent trading under Section 588G of the Corporations Act. It explores the circumstances under which directors can be held personally liable for debts incurred by a company that leads to insolvency, and discusses potential defenses available to directors under Section 588H. The analysis applies these principles to the same case study, assessing the actions of the directors in light of the company's financial difficulties and the reliance on information provided by the company's accountant.