Company law Essay Example | Topics and Well Written Essays - 2000 words - 1

Company law - Essay Example The duties as well as the obligations of the directors, workers and the other officers are encompassed in Sec 179 of the Corporations Act 2001 (Australian Company Incorporation Services 2012). The Corporations Act 2001 (CTH) is regarded as the company law that exists in Australia. The responsibilities as well as the duties of the directors are specifically mentioned under the law which needs to be abided by the directors of the companies. The laws that are believed to preside over the duties as well as responsibilities of the directors are considered to source or originate from three different areas. The stated areas have been identified as the statute law that is encompassed by the Corporations Act 2001 (CTH), the law made by the judges or common law and the constitution of a particular company (Australian Company Incorporation Services 2012). ... he common law entail that they need to primarily carry out their activities in relation or compliance with the best possible interests concerning the company. The directors should not indulge themselves in any kind of activities that does not represent a proper or appropriate intention. The behavior of the director needs to be performed with care as well as adequate meticulousness. The directors are stated by the law to act in certain ways with the intention to keep away from any kind of disagreements relating to interests. It is also considered quite imperative for the directors to avoid or not get engaged in an activity that involves taking inappropriate advantage of their respective positions as well as information. Finally, it is expected from them to refrain from entering into any kind of business dealings while they are considered to be insolvent (Australian Company Incorporation Services 2012). Qualifying as a director under the Corporations Act 2001 (CTH) implies that few def inite obligations as well as duties need to mandatorily perform by the directors. The violation of the mentioned obligations under the law would lead to strict legal actions against the directors. The directors are also required to discharge few fiduciary duties that are stated under the mentioned law. These kinds of duties that need to be carried out by the directors of the companies entail the rule out of misusing the position of the directors in order to attain any kind of an advantage with regard to their personal interests or even for some other individual. They need to take enough precaution while performing their activities in order to avoid any damage or loss with respect to the related corporation (Australian Company Incorporation Services 2012). The fiduciary duties prohibit the