specified topic reading and interpreting cases

Essay Question COSEC 77947 Autumn 2018
Requirement:
You are expected to research a specified topic reading and interpreting cases, journal articles and law reform policy reports. You are also expected to analyse the effect and operations of these laws and policies on companies and their stakeholders and you are expected to report on corporate legal issues using a Report format.
Objectives: This task addresses subject learning objectives 1,2,3 and 4. This task contributes to the development of the graduate attributes 1.0, 3.0 and 5.0.
Weight: 30%
Length 2,250 words
Submission: The assignment is divided into Part 1 and Part 2.
Part 1 (consisting of the first 400 words) is to be submitted to your lecturer in your designated class as noted in the subject outline. Part 1 is designed to allow students to express how they intend answering the assignment, the references they will use and the citations they will apply. Part 1 is not compulsory- it is only recommended for use by students who require some feedback as to their approach to the assignment.
Assume you have submitted Part 1, this will be returned to you by the lecturer in your class as noted in the subject outline.
The feedback provided by the lecturer is designed to help you to improve upon your assignment quality. Feedback will only be of value if you have clearly explained in Part 1 what are the material facts, what are the issues involved and what is the law that you are going to research and comment upon.
The combination of Part 1 (400 words) and Part 2 (1850 words) represent the complete assignment submission and the total assignment of 2,250 words is due as noted in the subject outline.
Question
The United Kingdom Companies Act 2006 Section 172 states:
“Duty to promote the success of the company
(1)A director of a company must act in the way he considers, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to—
(a) the likely consequences of any decision in the long term,
(b) the interests of the company's employees,
(c) the need to foster the company's business relationships with suppliers, customers and others,
(d) the impact of the company's operations on the community and the environment,
(e) the desirability of the company maintaining a reputation for high standards of business conduct, and
(f) the need to act fairly as between members of the company.”
The Corporations Act 2001 (Cth.) Section 181 states:
“Good faith–civil obligations
Good faith–directors and other officers
(1) A director or other officer of a corporation must exercise their powers and discharge their duties:
(a) in good faith in the best interests of the corporation; and
(b) for a proper purpose.”
Should Australia adopt the UK legislation? Discuss, giving reasons for your answer. Your answer must refer to both the Corporations Act 2001 (Cth.) and the decided case law for support.

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