BLAW20001 Lecture Notes - Lecture 9: Aberdeen Railway, Proprietary Company, Telstra

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

Document Summary

Di erence between general law and statutory duty: statute has extra provisions regarding con ict of interest. S 191; s 195 - criminal breaches. Related party transactions - civil penalty breach; not a duty: statutory duties apply more widely than general law, general law: duciaries" (directors, senior executive o cers, statute: S 191 - only directors: remember di erent remedies, who can enforce. General law con ict rule: a very strict duty - designed to protect shareholders. Can arise e. g. where director contracts with the company. Very common situation triggering the general law con ict rule. Disclosure of interest: where the general law con ict rule applies to a director, the director must disclose their interest to the company, con ict not disclosed = breach of duty, in some situations, greater disclosure may be required. Situations likely to give rise to greater disclosure requirements: Company is engaging in something new or with which it is unfamiliar.