a) Why do companies have directors in Australia? b) What is their best interests duty in Australia?

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Question:

a) Why do companies have directors in Australia?

b) What is their best interests duty in Australia?

c) Examining the position of one of the directors in your chosen case study, why did they resign? In particular, is it connected to their best interests duty? (Check the case study below)

d) Explain the steps involved in a director resigning.

e) Conclude your report

Chief of Australia Post Christine Holgate has fallen on her sword, admitting the "optics" of her gift of Cartier watches to four high-performing employees did not pass the “pub test for many people.

Holgate's Monday resignation follows Scott Morrison's ferocious parliamentary attack on her last month, when he said "the chief executive ... has been instructed to stand aside, if she doesn't wish to do that, she can go." Earlier that day, Holgate had revealed, under Labor questioning in Senate estimates, that she had given the watches as rewards.

The Prime Minister was particularly infuriated by Holgate's claim they were not paid for by the taxpayer because Australia Post - which is government owned – was a commercial enterprise. Morrison immediately set up an inquiry into the watches, which totalled nearly $20,000 in value, and other Australia Post expenses. In a statement on Monday, Holgate said that with great sadness” she had offered her resignation to the Post chair and board, with immediate effect. “I am not seeking any financial compensation," she said.

She said she would make herself available to participate in the inquiry. Holgate has been the object of a sustained leaking campaign to undermine her, reportedly involving disgruntled former employees. Morrison's attack on her has been criticised by some high profile business figures, who think he went beyond what was justified in response to her misjudgement. Holgate said as Christmas approached, with its significant challenges, it was critically important Australia Post was absolutely focused on its customers and communities.