Australia Corporation Law : Who Are Directors Of Company?

1840 Words Oct 14th, 2016 8 Pages
YU PAN
Professor Pooja Kumar
LAW 202
14/10/2016
Australia Corporation Law
Who are directors of company?
A director is a person in company who leads or supervises a particular area while the company is developing. These persons have similar duties and play different roles. In more details, “director” that cleared in S9 of the Corporations Act 2001 means that:
● A person validly appointed as a director or an alternate director;
● A person, even though not validly appointed as a director, if that person acts in the position of a director (‘de facto’ director);
● A person, even though not validly appointed as a director, if the directors are accustomed to act in accordance with that person’s instructions or wishes (‘shadow director’). For simplicity, the term ‘director’ will be used in this Director Q&A to refer to all those who are considered to be directors.
What are their duties of directors under Australia Corporation Law? There are two main aspects to thinking about duties of directors under Australia Corporation Law: general law duties and statutory duties. More exactly, these duties include: duty to retain discretions, duty to avoid conflicts, duty to act in good faith in the interest of the company, duty to use power for a proper purpose, and duty to act with reasonable care and diligence. (ASIC, 2016).
Also, as our lecture mentioned, S588G states that Directors have a duty to prevent their company incurring debts when the company is insolvent or would…
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