It can be argued that the distinct trend over many years has been the development, in statute and in cases before the courts, of laws and decisions which impose an increasingly heavy burden on directors in the performance of their duties and obligations to the company. As a result, directors who fail to observe these duties and obligations will be exposed to significant liabilities and penalties

LAW2300 Essay topic question for 01 2015

“It can be argued that the distinct trend over many years has been the development, in statute and in cases before the courts, of laws and decisions which impose an increasingly heavy burden on directors in the performance of their duties and obligations to the company.  As a result, directors who fail to observe these duties and obligations will be exposed to significant liabilities and penalties.”

Reflect on the above statement and then, within the scope of the unit, discuss the nature and extent of this responsibility and liability of directors to the company.  Your discussion should include a critical analysis of the nature, application and effectiveness of the range of duties of directors under the Corporations Act.  In addition, you may also give some consideration to the relevant duties of directors at common law, by way of background and critical comparison.  As this essay requires an analytical approach, you should extend your discussion well beyond a mere description of the principles.

You should use section numbers and case authorities to support your arguments, and if possible illustrate with examples of contemporary cases before the courts.  You should use a range of secondary authorities (books and articles), consistent in number and quality with a second year undergraduate level university essay, and duly acknowledged with proper referencing to support your assertions and arguments.  When constructing your essay, reference must be made to the requirements listed in the Unit Plan for this assignment, and you should use the relevant format template provided on Blackboard in due course.

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