What Is the Usual Consequence of a Director Breaching a Common

question 25

Multiple Choice

What is the usual consequence of a director breaching a common law duty to the company?

• A)The director will be required to pay damages to the company.
• B)ASIC will take action against the director.
• C)The director will be sent to jail.
• D)The company will not be bound by any contracts they enter into in breach of their duties to the company.

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Definitions:

Statistical Concept

A statistical concept involves the methodologies and theories that underpin the analysis, interpretation, and presentation of numerical data.

Abnormal Behaviour

Refers to patterns of emotion, thought, and action deemed pathological (outside the norm of a culture) for one or more reasons, including statistical rarity, personal distress, or violation of norms.

Galen

An ancient Greek physician and philosopher whose theories and writings on anatomy and medicine significantly influenced Western medical practice for centuries.

Criteria for Abnormality

Criteria for abnormality are the standards or guidelines used to determine when behavior or psychological states deviate significantly from what is considered typical or healthy.