Explore BrainMass

Explore BrainMass

    Example of Breach of the Corporations Act

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    See the attached file.
    The main business of Property Investment Pty Ltd is acquisition, development and selling of properties. There are three directors. At a meeting of the board of directors on 1 June 2012, a proposal was presented by David, a director of Property Investment Pty Ltd, for the purchase of a site adjoining a rubbish dump for $3 million from a vendor namely Seaview Pty Ltd. Seaview Pty Ltd acquired the site for $2 million on 1 June 2010. David is the sole shareholder and his wife and son are directors of Seaview Pty Ltd. David did not disclose his personal interests in the site and the proposal was finally approved at a meeting of the board of directors of Property Investment Pty Ltd on 10 July 2012

    Advise David of any potential breach of directors' duties to Property Investment Pty Ltd. Support answer by reference to the relevant case law and Corporations Act 2001(Cth).

    © BrainMass Inc. brainmass.com March 7, 2023, 1:02 pm ad1c9bdddf


    Solution Preview

    David is required to disclose his personal financial interest in this deal to the board in addition to any financial interest wherein he or relatives are members. Obviously ...

    Solution Summary

    This solution provides an example of a scenario that involves a business entity suing a director on the board of directors for breach of fiduciary duty under the Corporations Act.