Fiduciary Duties (ss131-134) Flashcards
1
Q
s131
A
duty of directors to act in good faith and in the best interests of the company
2
Q
criteria for s131
A
Subjective: whether the directors have done what they honestly perceived to be right of in the best interest
Objective standard: how people in that situation might be expected to act
3
Q
cases for s131 criteria
A
Hedley v Albany Power Centre
Walker v Wimborne
4
Q
who duty is owed to (2 cases)
A
When solvent: shareholders
When insolvent: creditors
Sojourner v Robb
Nicholson v Permakraft
5
Q
s133
A
duty of directors to exercise their powers for a proper use
6
Q
s134
A
duty of directors to comply with the Act and constitution
7
Q
failure to comply with s143
A
Injunctions can be applied, otherwise shareholders can sue under s170. if shareholder harmed by breach, can take action under s174
