QLD Legl2002 Wks 7-12 EXAMS ALREADY VERIFIED

The court's decision in Equiticorp Finance Ltd v Bank of New Zealand (1993) is an example of which of the following legal principles? - A decision made by directors which benefits another company in a corporate group is not a breach of duty where it was reasonable for the directors to believe that the decision also benefited the directors' company. Which of the following is a proper purpose in relation to a decision by a board of directors? - To issue more shares in the company to employees as part of an incentive scheme to encourage them to be more productive. Which of the following statutory duties in the Corporations Act is not only owed by officers of the company (including directors) but is also owed by all company employees? - The duty not to improperly use the company's information under s 183. Wk 9: The other directors of Dog Toy Pty Ltd have been aware for some time that Shail is the only shareholder of Aussie Plastics Ltd. Two weeks ago, Dog Toy Pty Ltd entered into a significant contract with Aussie Plastics Ltd to buy plastic for the manufacture of the dog toys it is producing. Which of the following is correct about Sahil's obligations under section 191 of the Corporations Act. - Because Dog Toy Pty Ltd is a proprietary company, section 191(2)(b) would apply, and since the other directors are aware of the nature and extent of Sahil's interest in Aussie Plastics Ltd he is exempt from making disclosure under section 191(1). Section 191(2)(b) of the Corporations Act provides that a director does need to give notice under section 191(1) if the company is a proprietary company and the other directors are aware of the nature and extent of the interest and its relation to the affairs of the company. What are the requirements that must be satisfied before a director can rely on s 187 of CA to avoid liability for breach of duty? - A director of a corporation that is a wholly-owned subsidiary of a body corporate is taken to act in good faith in the best interests of the subsidiary if: (a) the constitution of the subsidiary expressly authorises the director to act in the best interests of the holding company; and