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Question 1 Quentin and Mark now seek your advice regarding any potential breach of directors’ duties.

You should consider:

(i) The duties attaching to the office of director.                       

(ii) Distinguish between executive and non-executive directors.

(iii) Quentin’s potential breach of the duty of care and diligence.                                                                                                                        

(iv) Mark’s potential breach of his equitable duties.                   

(v) Consequences flowing from breaching these duties.             

Question 2 The separate legal entity theory for corporation involves the notion of a corporate veil.

Question 3 Is the protection provided by the corporate veil justifiable and adequate?

Question 4 In answering Part B you are expected to consult both primary material (e.g. case law, statute) and secondary sources (e.g. journal articles, academic books). Any internet sites consulted must be relevant to the topic and should be from academic and Australian legal websites (e.g. ASIC website or Law Reform Commission).

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