BLAW20001 Lecture Notes - Lecture 8: New Board, Aberdeen Railway, Civil Penalty

• School: University of Melbourne
• Department: Business Law
• Course: BLAW20001
• Professor: Helen Anderson

Document Summary

Duty to avoid conflict of interest: co(cid:373)(cid:373)o(cid:374) la(cid:449) duty to a(cid:448)oid (cid:272)o(cid:374)fli(cid:272)ts of i(cid:374)terest. Statute duty to dis(cid:272)lose (cid:373)aterial perso(cid:374)al i(cid:374)terest. Director must avoid an actual or substantial possibility of conflict between a personal interest and the director"s duty to act in the interest of the company. No breach of duty if: permission of the company is obtained, or, constitution allows directors to have personal interest in the transaction. Duty has origin in both case law and statutes. Statues have extra provisions regarding conflict of interest: s. 191 duty to dis(cid:272)lose (cid:373)aterial perso(cid:374)al i(cid:374)terest s. 195 restri(cid:272)tio(cid:374)s o(cid:374) (cid:448)oti(cid:374)g of pu(cid:271)li(cid:272) (cid:272)o(cid:373)pa(cid:374)y dire(cid:272)tors: related party transa(cid:272)tio(cid:374)s (cid:272)i(cid:448)il pe(cid:374)alty (cid:271)rea(cid:272)h, (cid:271)ut (cid:374)ot a duty. Statutory duties apply more widely than general law: Statutes s. 182 and 183 apply to directors officers and employees. Duties apply to fidu(cid:272)iaries people i(cid:374) a particular position of power s. (cid:1005)(cid:1012)(cid:1006) (cid:373)isuse of positio(cid:374) s. (cid:1005)(cid:1012)(cid:1007) (cid:373)isuse of i(cid:374)for(cid:373)atio(cid:374) s. 191 applies o(cid:374)ly to dire(cid:272)tors dis(cid:272)losure of i(cid:374)terest at directors meetings.