Corporations Law: Optimum Insurance

Corporations Law Assignment i. Advise the shareholders of OI Ltd whether the directors have breached any duties. Discuss fully. Optimum Insurance Ltd (OI Ltd) is registered as a public company and is operated by a board of 5 directors. The board includes 4 executive directors, one of whom is the managing director - Frances and another non-executive director, Greg who is also the company's financial planning consultant. A number of issues have arisen whereby the actions or …

…team is an entity controlled by Greg s 228. As both these sections have been satisfied, the key provision under s 208(1) requires shareholder approval in order for the financial benefit to be given. Thus Greg has contravened s 208(1) because he failed to not only disclose his interests but also in seeking shareholder approval. Greg has thus contravened a civil penalty provision: s1317E which enables a court order for payment of a pecuniary penalty or compensation.