Question
Sahil is a director of Dog Toy Ltd, a company which makes and sells plastic dog toys. Sahil is also a majority shareholder in Aussie
Sahil is a director of Dog Toy Ltd, a company which makes and sells plastic dog toys. Sahil is also a majority shareholder in Aussie Plastic Ltd, a company which sells plastic products. Sahil is also majority shareholder in Aussie Plastics Ltd. Dog Toy Ltd entered into a significant contract with Aussie Plastics Ltd to buy plastic for the manufacture of the dog toys it is producing. Which of the following is correct about Sahil's obligations under section 191 of the Corporations Act.
a. The only way Sahil can satisfy his obligations under section 191 is by giving notice to the other directors of the nature and extent of his interest in Aussie Plastics Ltd.
b. If Sahil was required to make disclose under section 191, he could not be present at any meeting where the contract with Aussie Plastics Ltd was being discussed.
c. Because Dog Toy Ltd is a proprietary company, section 191(2)(b) would apply, and since the other directors are aware of the nature and extent of Sahil's interest in Aussie Plastics Ltd he is exempt from making disclosure under section 191(1)
d. Sahil does not have any obligation under section 191 because Dog Toy Ltd is a proprietary company and section 191 only applies to public companies.
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