One of the Main Attractions of the Company as a Business

question 16

Multiple Choice

One of the main attractions of the company as a business structure is the limited liability that it affords directors.Sometimes the Court will however 'lift the corporate veil', disregard the separate personality of the company, and hold directors personally liable for the actions of the company.In which of the following circumstances is the Court least likely to do this?

• A)Where the corporate form is being used to avoid an existing duty.
• B)Where the company is acting as the agent of the directors.
• C)Where the company is unable to repay a business loan.
• D)Where the insolvent trading provisions of the Corporations Act 2001 (Cth) apply.

---

Definitions:

Antigens

Antigens are substances, often foreign, that provoke an immune response in the body, especially the production of antibodies.

Monocytes

A type of white blood cell involved in the immune response, capable of differentiating into macrophages and dendritic cells to combat infection.

Phagocytosis

A cellular process where cells, usually immune cells, engulf and digest particles or pathogens to eliminate them.

Rheumatoid Factor

An autoantibody that is often present in the blood of individuals with rheumatoid arthritis and some other autoimmune diseases or infections.