Select the statement which most accurately reflects the outcome of Northside Development Pty Ltd v Registrar General:

Select one:

a.The Court held that the Doctrine of Estoppel applied, which prevented the company from denying the contract

b.The Court held that the bank could escape liability under the contract, because a reasonable person would assume that a company director hasauthorityto sign on behalf of the company

c.The Court held that the bank could rely on the Indoor Management Rule, because the 'Put on Inquiry' exception applied

d.The Court held that the bank was NOT allowed to rely on the Indoor Management Rule, because the 'Put on Inquiry' exception applied

Question2

A director's duty to avoid a conflict of interest includes:

Select one:

a.Not taking up an opportunity that belongs to the company

b.Not making a personal profit from an opportunity arising from their office

c.All of the above

d.Not using his or her position for private gain

Question3

Within how many days after the administration begins must an administrator convene the first meeting of the company's creditors?

Select one:

a.8 days

b.20 days

c.25 days

d.5 days

Question4

Select the correct statement: Where a resolution was passed at a meeting which lacked the required quorum.

Select one:

a.The resolution is automatically invalid

b.The resolution is automatically valid, unless overturned by court order

c.Members holding at least 10% of the shares in the company can vote to reverse the resolution

d.Members have 24 hours to demand that company directors call an extraordinary general meeting

Question5

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