QUESTION 2 [20 marks - ten parts worth 2 marks each]

Choose either True (T) or False (F) for each of the following questions - put your answers in the answer space below:

i)"Corporate veil" was lifted by the court inSalomon v Salomon & Co Ltd[1987] AC 22 case.

ii)Business Judgment Rule (BJR)was used as a defence by Mr Rodney Adler to the action brought against him under s. 180(1) of the Corporations Act 2001 (Cth) inASIC v Adler[2002] NSWSC 171 case.

iii)The legal personality of a company is not affected by the appointment of a privately appointed receiver.

iv)A statutory demand does not have any further effect if it is immediately paid off.

v)Apublic company is not required to appoint a 'company secretary'.

vi)Companies must keep their financial records for at least seven (7) years.

vii)The rules on "contributory negligence" was applied in the context of directors' duties inDaniels v Anderson(1995) 13 ACLC 614 case.

viii)A company limited by guarantee does not have the power to issue shares.

ix)Proxies can be 'directed' giving specific instructions on how to vote on the resolution, or 'undirected' leaving voting to the discretion of the proxy.

x)A liquidator's main role is toinvestigate the company on behalf of the Australian Securities and Investments Commission (ASIC).