Question 1

Barry has been invited to join the board of Scrub A Dub Dub Pty Ltd, a company in the

business of providing cleaning services to hotels. Barry has 10 years of experience in

marketing. The company wants to expand into more lucrative cleaning services for public

transport, and it wants to use Barry's marketing expertise to target these new clients.

However, Barry is nervous about becoming a director of a company because he has no

financial background, training or education, and he has never managed a business

before.

Using your knowledge of Australian company law and legal references, advise Barry:

(a) about the legal risks he might face if he becomes a director of the company; and

(b) how he can minimise or address those risks