"Company directors have to exercise a very high standard of care and diligence under both theCorporations Actand case law because if they make a decision that causes any damage to the company, they will be personally liableto creditors."

REQUIRED:

Using your knowledge from studyingChapter 13.4, brieflydiscuss the correctness of this statement. Include in your answer an explanation of the meaning of the directors' duty of care and diligence by reference to theCorporations Actand case law and also a description of anydefencesavailableto directors in this situation.