Various Issues Relating to the Corporations Act and their Effects on Directors and their Duties
The directors are required by the Corporations Act 2001 not to do anything that requires disclosure to investors. If they fail to do so they are held liable by Sec 45 of the Corporations Act that stipulates the governance of a small proprietary company. According to Peter the constitution of Kandy K restricts the directors to facilitating a loan of not more than one million dollars unless the members pass the resolution in a general meeting as was the case in Howard v Patent Ivory Manufacturing Co (1888) where the decision by the directors to borrow over the stipulated limit was nullified. ...
