1. Select the most appropriate statement. Company officers will only be excused from a breach of their fiduciary duty to avoid conflicts of interest:

Select one:

a.All of the answers are false

b.If they make no profit from the breach

c.As long as the company suffers no loss

d.As long as the company makes a profit in the long run

Question6

The duty to retain discretion means that:

Select one:

a.The director should disclose any material personal interest to the board of directors

b.The director should remain independent, freely exercising their powers in the company's best interests

c.The director should stay away from board meetings when they have a material personal interest in a matter to be discussed at the meeting

d.The director should not disclose any material personal interest to the board of directors

Question7

In relation to a company's Annual General Meetings (AGM), select the most accurate statement:

Select one:

a.All of these functions are performed at the AGM

b.The AGM is used to elect directors

c.The AGM is used to consider the financial report

d.The AGM is used to consider the auditor's report

Question8

On winding up, which debts or amounts must be paid first?

Select one:

a.Secured creditors with a fixed charge over specific property

b.Unsecured debts and loans

c.Secured creditors with a floating charge over trading stock

d.Employee wages and entitlements

Question9

Which of the following statements most accurately summarises the legal principle behind Duty 4 - Duty to act in good faith and in the best interest of the company:

Select one:

a.Directors only owe a duty to the company's creditors if the company is nearing insolvency

b.While the company is solvent, directors owe a duty to majority shareholders

c.Directors who suspect that the company is nearing insolvency, owe a duty to unsecured creditors

d.While insolvent, the directors act in the best interest of the company - only now, the company's interest is to minimise harm to creditors