BUSN2101 Chapter Notes - Chapter 13-14: Fiduciary, Employee Stock Ownership Plan, Consumer Protection
Document Summary
Where this duty may arise (cid:449)here dire(cid:272)tors are(cid:374)"t a(cid:272)ti(cid:374)g i(cid:374) the (cid:271)est i(cid:374)terests of the shareholder where a director is unfamiliar with business or fi(cid:374)a(cid:374)(cid:272)ials of (cid:272)o(cid:373)pa(cid:374)y, or did(cid:374)"t (cid:272)arry out responsibilities with care. Duty to act in good faith and for a proper purpose s 181 where director is not acting in the best interests of the company and for his own benefits. Duty not to improperly use position to gain advantage or cause detriment to company s182 where director takes advantage of an opportunity that could have only arisen due to his position as the director. Duty to prevent insolvent trading s588g where company is having cash flow issues and director puts them in further debt. Duty to disclose personal interests (s194- prop cos) where director has a personal interest in a transaction; obtaining some sort of payment through the company.
