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Department
Business
Course
AYB230
Professor
All Professors
Semester
Fall

Description
Week 8 – Week 6 – Directors’ Duties What was the main difference in treatment of the executive and non-executive directors in the AWA v Daniels and Daniels v Anderson cases? In AWA v Daniels, Rogers CJ held that non-executive directors were not held to the same objective test of care, skill and diligence as executive directors. However, in Daniels v Anderson, the Court of Appeal held that the same objective standard of care applies to both executive and non- executive directors. What are the similarities and differences between s1317S and s1318? Both s1317S and s1318 are provisions allowing the court to exonerate a defendant from liability under the Act, where the person “acted honestly” and with regard to all the circumstances the person “ought fairly to be excused”. However, the difference is that s1317S applies to contraventions of a civil penalty provision, and s1318 applies to any proceedings for “negligence, default, breach of trust or breach of duty.” What is ‘inside information’? What provision tells you this? Under s1042A, inside information is not generally available, and reasonable persons would expect it to have a material effect on the price or value of securities (shares). What is insider trading? What provision tells you this? Insider trading is prohibited by s1043A. It occurs where a person possesses inside information (s1042A), and they are aware it would materially affect the price or value of shares, and they either: Actually trade in the shares; or Procure someone else to trade in the shares for them; or They communicate the information to someone likely to use it to trade in the shares. What is involved in the duty to prevent insolvent trading (explain it in your own words)? What is insider trading? What provision tells you this? Insider trading is prohibited by s1043A. It occurs where a person possesses inside information (s1042A), and they are aware it would materially affect the price or value of shares, and they either Actually
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