Bfa601 Business And Corporate Law Assessment Answer

The cause of action

The director Mr O' Halloran stated that he was under immense pressure of cash generation in order to meet financial requirements and therefore he was not able to place the order of selling the share. It was held by the lower court that non of such situation have arose and the director intentionally entered into such act to lower down the price of the shares It was assumed by the court that all the transactions were pre-decided by the appellant.

Duties of directors

At common law the directors have the duty to act in the best interest of the company for a roper purpose They must not misuse their position in the company to make personal interest at the cost of the company. These duties exist at both common law and statues

Decision of the court

The court in this case provided that section 994 of the corporation law is very wide in relation to misleading and deceptive conduct The court refused to grant a special leave and the appeal of the appellant had been refused

Relevance of the decision

After this case the existing corporation law of Australia had been enacted by the parliament in form of the Corporations Act 2001 (Cth) and the Australian Securities and Investment Commission Act 2001 (Cth) Section 52 of the CA has been developed in the light of this case in relation to misleading and deceptive conduct.

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