First Principles of Business Law

Business organisations in Australia

7. Companies

Question 7. What limits are placed on the exercise of power by company directors?

 

 

 

Read the statements below and select the best one.

(a) Generally, directors may exercise all the powers of the company, but the common law and legislation both impose limits on the exercise of these powers, for example, a duty to act with reasonable care and in good faith.

(b) Generally, directors may exercise all the powers of the company and are only subject to any limitations that are included by agreement in the terms of the director's appointment.

 

 

 

 

 

 

 

 

 
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