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

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

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

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

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

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

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

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

Select one:

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

b.The resolution is automatically invalid

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

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