Download free sample Order new solution

Week 6

Situation 1: Yes, the breach has taken place in the first situation. A director must pursue the interest of the company and the stakeholder in the utmost good faith. A company and a director are two different personalities in the eyes of law. So, taking out the sum from the account of the company and using it for personal debt is the usage of money for material personal interest and as per Corporations Act, the director should not make decisions in her interest. Thus, taking out the money from the business and using it for personalized gain is a breach of duty of the director.

Situation 2: No, no breach has been carried out in the company. According to the Corporations Act duties of directors, they should make a judgment with a purpose that is appropriate and also in the good faith of the company. This has been carried out by her in the situation. She had information that company is in a situ....