In Which of the Following Situations Will a Director Be

question 41

Multiple Choice

In which of the following situations will a director be found to have breached their duty to exercise discretion?

• A)The director has put themselves in a situation where their duties to the company and their personal duties conflict.
• B)The director has agreed to vote in a certain way at future board meetings.
• C)The director has done something which no reasonable director could regard as being in the interests of the company.
• D)The director has exercised one of their powers primarily in order to gain some private advantage.

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Definitions:

Reasonable Period

An ambiguous span of time that is fair and appropriate under the circumstances, often used in contract and employment law.

Mirror Image Rule

A principle in contract law that requires acceptance to be on exactly the same terms as the offer to result in a contract.

Common Law

A body of law derived from judicial decisions and precedents rather than statutes, predominant in countries like the UK and the US.

Woodshed

Informally refers to the process of practicing or improving skills in private, often used in a musical context.