The assignment statement is as follows:
"Directors in whom are vested the right and the duty of deciding where the company's interests lie and how they are to be served may be concerned with a wide range of practical considerations, and their judgment, if exercised in good faith and not for irrelevant purposes, is not open to review in the courts."[1]
Required
With reference to the above statement, case law and the Corporations legislation discuss the following:
What does the term ‘good faith for a proper purpose" mean as it is used in the Corporations Act 2001 (Cth)?
In your answer give three examples from the provisions of the Corporations Act 2001 (Cth) and discuss how these provisions demonstrate the role of the term ‘good faith for a proper purpose" as a corporate governance mechanism.
Research
You are expected to demonstrate a comprehensive review of the primary law sources (legislation, case law) as well as an adequate review of secondary sources (for example textbooks, journal articles, case commentary, explanatory memoranda, Law Reform Commission reports). Your research should be used to identify and clearly state the relevant issues and legal principles and support your analysis.
Analysis
You are expected to analyse the information gathered and evaluate the relevant legal principles. You are expected to develop your argument logically through clear analysis and apply relevant legal principles to the resolution of issue(s). Your analysis should also:
integrate and evaluate relevant knowledge from the material covered in this unit
develop and sustain a concise and convincing legal argument through to a logical conclusion, and
importantly, answer the specific question asked.