BTF1010 Study Guide - Final Guide: Aluminium-Conductor Steel-Reinforced Cable, Trading While Insolvent, Fiduciary
11 Sep 2018
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Duties of company directors and other officers: state of south australia v clark (1996) 14 aclc 1019 (pg 532) Facts: clark was the md and ceo for south australia bank. He was instrumental in acquiring shares in a company without evaluating its true value. Clark knew that the proceeds from the sale would be used to repay a loan of a company in which clark was a director and had major holdings. Clark did not disclose his involvement with the company. Bank sued him for damages and breach of contract. Decision: s 180 sets out that the duty of company director or officer is to exercise a reasonable degree of care and diligence. Officer has breached his duty if he fails to exercise reasonable care. In this case clark had to pay million as damages: circle petroleum (qld) pty ltd v greenslade (1998) 16 aclc 1577 (pg 533)
