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Case deals with the issues of statue law and case law. Due to breach of directors' duties, Groovy George Ltd (GG) placed into liquidation. As, this case describing, that GG has appointed four directors so the liquidator can prove by the following rules whether all of the directors breached their duties or only some of them are the liable.
These duties were falling into three broad groups under the Corporations Act 2001:
-S 180(1) the duties of care and diligence, which says the directors of GG corporations, must exercise their powers and discharge their duties with the degree of care and diligencei.
-S 181 duty to act in good faith and for a proper purpose because the Directors owe duties of good faith and loyalty because they are in a "fiduciary relationship" with GG: like in the case Elders trustee and Executor Co Ltd v E G Reeves Pty Ltd (1987) 78 ALR 193ii.
-S 182(1) improper use of position which illustrates that the directors of GG must not improperly use their position to:• (a) Gain an advantage for themselves or someone elseiii
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