There are 2 questions in this section. Each question is worth 10 marks. Total marks available: 20 marks.

Question B1

If a director breaches his or her statutory and common law directors' duties, why is it that only the company itself of which the director is part can commence a legal action against the erring director? What are the remedies available to the company if a director breaches his or her duties?

Question B2

Directors owe a fiduciary duty towards their companies. Explain what this means. Name the specific fiduciary duties owed by directors to their companies.