1. The directors of China Investments Pty Ltd are Mr Chester and Ms Wu. China Investments has not held a board meeting for several months. At a recent AMGL board meeting, it was resolved to double spending on advertising to financial institutions in China. Mr Eager instructed the country manager at China Investments to arrange the advertising and she did. In these circumstances, could AMGL itself be considered a director of China Investments?

See [10-370], s9 of the Corporations Act and Standard Chartered Bank v Antico and Buzzle Operations Pty Ltd (in liq) v Apple Computer Australia Pty Ltd. The ISSUE is reasonably clear in this case. But could you specify it further? And what is the general RULE about who is a director? How is this rule extended by the cases? Describe the relevant statutory provisions and judicial clarifications, before applying them to the facts of this case and CONCLUDING your answer.