The forklift purchased from Industrial Pty Ltd is found to be unsuitable as it cannot carry the weight required. The directors failed to consider this important feature when purchasing the forklift which has now had to be sold at a loss. Referring to the Corporations Act and case law, describe the duty that the Directors may have failed to observe when undertaking the forklift purchase. Include in your answer any defenses available to each of the Directors.

Answer rating: 100% (QA)

Under the Corporations Act 2001 Cth directors have a number of duties and obligations when it comes to managing the affairs of their company One of these duties is the duty to exercise care and dilige... View the full answer