1.The Personal Properties Securities Act provides that if there are two perfected mortgages against company property then priority is given to:

Neither as the Act only provides for personal properties owned by natural persons

There is no priority between either of them

The first in time

The last mortgage executed by the company

2.Under the general law, a duty on directors to avoid a conflict of interest is:

Ratified by the Corporations Act

In the best interests of the company

Applied strictly and pays no regard to the motives of the director who is conflicted

Not applicable

3.Insider trading is prohibited by the Corporations Act. "Inside information" means information that is:

Not generally available or is if the information were generally available, a reasonable person would expect it to have a material effect on the price or value of particular Division 3 financial products

Available to every person dealing with Division 3 financial products which would have no material effect on the price or value of particular Division 3 financial products

Gossip which is publicly available and would have no material effect on the price or value of particular Division 3 financial products

Contained in the Directors' Report produced in compliance with s298(1)

4.Under the Corporations Act, directors, other officers and employees must not improperly use their position:

To destroy the communities in which the corporation operates

To gain an advantage for the corporation

To cause detriment for other related entities of the corporation

To gain an advantage for themselves or someone else or cause detriment to the corporation

5.There is a defence to statutory directors' duties if

They take out insurance to professionally cover their duties

The court states that they have acted honestly or there was a reasonable excuse

They resign

There is a break in the chain of causation between the directors and the company