Company Law

QUESTION 1 - DIRECTORS' DUTIES (a)<Tab/>Purchase of Quality's fabric importing business Division 2 of Part 2D.1 states that where director have a personal interest in contractual transacting with their company, Director must disclose that interests to the board of directors when conflicts arise and seek approval. Bing has an undisclosed interest in his consideration of acquiring Quality because he is a director and a major shareholder in Quality's and it is …

…only to the relationship between a subsidiary company and their ultimate or direct holding company. It is therefore obvious to state that each company within a group should not be liable for the tort of negligence of another subsidiary, unless there a direct involvement and contribution to the negligence proven. Bibliography Companies & Securities Advisory Committee, Company Groups Final Report, May 2000 Lipton P, Herzberg A, Understanding Company Law Tenth Edition, Lawbook Co. Pyrmont NSW 2001