There are certain types of payments that are unlawful to directors unless approved by the company in the general meeting, explain. If a company does not comply with the required requirements to consider before paying dividends and still decides to pay them, then the dividend will be unlawful. Unlawful dividends is an example of an unlawful payment that directors can approve in a general meeting. In most cases, even though the directors pass these payments, mostly fts based on errors. These errors may arise because of: 1. use of a wrong figure that causes a miscalculation of the company's profits and eventually leading to illegal dividends. 2. a systematic error arising during the time of declaring the payment. 3. lack of proper bookkeeping records. 4. lack of enough knowledge on the transfer of the company's assets. Elaborate on common law duty of care and statutory duty of care of company directors. Directors, under general law have trustful duties which include: duty to act in good faith and not to work against the interest of the organization. duty to remain discrete. duty to not unlawfully use their powers. duty to ensure that they avoid conflict of interest. Director duties under the Corporations act are known as the statutory duties and they include: duty not to use information obtained in an unlawful manner. duty not to use their position inappropriately.