Company Law Essay

6037 Words25 Pages
The LAW2300 Essay Assignment topic for 01 2014 is as follows: “From the earliest times in Australian company law history, the notion that directors owe their companies the twin obligations of a fiduciary duty of good faith, honesty and fidelity and a negligence-avoiding duty of care, skill and diligence in their roles has arguably been a strong, persistent and compelling one. Indeed, these two obligations, it might be argued, provide the ‘well spring’ from which the statutory duties under the Corporations Act flow. Principal among these statutory duties is the Duty of Good Faith, with respect to s.181(1) and also s.184(1), and the Duty of Care and Diligence, under s.180(1).” Reflect carefully on the above statement and then, within the scope of the unit, discuss the nature and extent of the statutory duties imposed on directors by the Corporations Act as identified in the last sentence of the statement (that is, the Duty of Good Faith and the Duty of Care and Diligence). You should also consider the liabilities and penalties imposed under the Act for breach, and any other directly relevant matter such as the business judgement rule in relation to the Duty of Care and Diligence. You should briefly address the common law duties of directors by virtue of the notion proposed in the statement above that the obligation of good faith and honesty and the obligation of care and skill have helped to give rise to the statutory duties in the Corporations Act. As this essay requires an analytical approach, you should extend your discussion beyond a mere description of the principles. Whilst a good descriptive coverage of the relevant principles and rules relating to both duties noted above is certainly expected, in terms of the analytical component of your essay you are required to focus on a significant aspect or issue of either the Duty of Good Faith

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