Download free sample Order new solution

Company Law

1. The statement heard by Louise is correct as in subsequent years, ASIC has utilized what others have described as a 'phase stone' method to the statutory duty of care of a director. (Herzberg and Anderson, 2012). The first move includes a lawsuit against a business for breach of the Corporations act. If the corporate negligence is found and the directors violated their statutory duties by causing their business to the possibility of criminal action, the liability of civil nature, or serious reputational harm, then claims can be made against them. As a result, a form of liability of civil nature for corporate negligence can be incurred by directors and officers. And there is no reasoning why the concept should be limited to infringements of the Corporations Act, 2001. This can be extended almost as effectively to directors who cause their businesses to violate environmental laws. In[1] involving suspected violations of the directors: Edelma....