What is oppressive conduct within the meaning of s 232 of the Corporations Act explain and provide an example?
The Corporations Act (Section 232) details conduct that constitutes ‘oppressive conduct’. In general, minority oppression includes conduct that is: contrary to the interests of the shareholders as a whole; or. oppressive to, unfairly prejudicial to, or unfairly discriminatory against a shareholder or shareholders.
What does Section 1318 of the CTH do?
Section 1318 of the Corporations Act 2001 (Cth) (Corporations Act)provides some protection for company officers3against the consequences of a breach of duty in limited circumstances4. The section confers a discretionary power on courts, which reads:
What are the terms of the South Australian corporation law?
The terms of the South Australian legislation (section 29) are in thrust similar to section 1318 of the Corporations Law. Section 29 provides: (1) No liability attaches to a Director or other officer of the Bank for an act or omission done or made, in good faith, and in carrying out, or purporting to carry out, the duties of his office.
Why was Section 232 of the corporations law changed?
In 1992 the Commonwealth Government proposed a change to section 232 of the Corporations Law to address a concern that the statutory standard of care and diligence should be expressed in a more objective format with certain “signposts”, “guidelines” or “lines in the sand” which would assist the average director in his/her deliberations.
Is there a duty to prevent insolvent trading in SS 588h?
The currently available defences to the duty to prevent insolvent trading in ss 588H and 1318 are both underutilised and rarely successful. A more general defence should be introduced to allow directors greater ﬂexibility in attempting informal work-outs of distressed companies.