Essays on Rights and Duties of Directors Case Study

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The paper "Rights and Duties of Directors" is a wonderful example of a Management Case Study. Corporation law or other words (law of business association) is an act that is developed and amended to govern how companies operate their businesses (Cox, & Hazen, 2012). The corporation law has the power to dictate any company concerning its steps all the way from registration to interaction with stakeholders. Since a company involves the interaction of different members for it to run smoothly and consistently the relationship between the company and corporation law governs its members.

Some illegal business transactions may develop from the company's directors and associates that are meant to hit and affect the community either directly or indirectly obtaining money. The relationship of the company to its shareholders has, therefore, to be protected by the act. Also, the interaction of the consumers and other stakeholders in the community to the company's directors and employees is under corporate law. The primary goal of partnership law in a business set up is ideally the security to protect each and every person in the business transaction regarding a particular company (Cox, & Hazen, 2012).

In a situation where there is no law to control and maintain order in business activities, some business members are then exposed at risk of losing their wealth especially the stakeholders. Corporation law is, therefore, a business association like any other including a partnership that has the mandate to control the business in the fairest and honest manner (Emerson, 2004). A company director is an individual chosen from a group of managers given the duty to lead or supervise a company or a particular area of the company (Crew, 2005).

The director also has some qualifications that define their position. These requirements include age above eighteen years old, should not be aboard corporate, required to have been discharged bankrupt, they can't serve as directors in more than 25 companies, and lastly should not be disqualified (Crew, 2005). Other definitions of a director to a company are any individual responsible for the transparency of the company. Australian corporation law enhances the performance of company directors. By so doing, the law under the corporation act 2001 also governs the conduct of the directors of a company for the best of the company.

According to the Australia corporation law, a company director is someone accountable for all business transactions in the company and controls the relationship of the company with its shareholders, employees, and the customers (Griffin, 2007). The duties of the directors are all focused on the best outcome for the company. From the directors of a company, there is a board of committee that works hand in hand to ensure that all goals be achieved in the company.

In this organizational structure of a company's management, the chief director has the following duties and responsibilities under the corporation law. One of the most important duties is the legal duty to act in good belief considering the best benefit of the company (Griffin, 2007). Acting in good faith considering the best interest of the company Under this duty, the best interest of the company entails the employees, the company in a group company, the creditors, and the existing and future members. Concerning the best interest of the employees, the director's duty in the company is to observe that human rights are adhered to, and employee's rights are not violated and misused.

There are obligations a company is limited to towards its conduct to the employees. These obligations under the Australia corporation law include the prevention of unfair discrimination in the company and the promotion of equality. Unfair discrimination is observed in many companies as well as other institutions. This misconduct has been limited and should not be practiced as obligated by the Australia corporation law.

On the promotion of equality under the best interest of employees as indicated by the act, it is the fiduciary duty of the director to ensure that all employees are treated in the best way possible. The employees are determinants of the company's outcomes as well as the best interest of the company.


Bruce, M., 2010, Rights and duties of directors. Haywards Heath, West Sussex, Bloomsbury Professional.

Crew, A., 2005, The whole duty of a director. His rights, duties, powers, legal liabilities. London, Gee & Co.

Cox, J. D., & Hazen, T. L., 2012, Corporation law. Chicago, Ill, American Bar Association, General Pratice, Solo & Small Firm Division.

Emerson, R. W., 2004, Business law. Hauppauge, N.Y., Barron's.

Griffin, W. F., 2007, Fiduciary duties of directors, officers & owners of closely-held businesses. Boston, MA, MCLE.

Ramsay, I. M., 2007, Corporate governance and the duties of company directors. Melbourne, University of Melbourne, Centre for Corporate Law & Securities Regulation.

Parliament of Australia, 2013, The performance of the Australian Securities and Investments Commission.

Webster, H. K., 2008, Fiduciary duties of nonprofit directors and officers. Arlington, VA, Tax Management.

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