The case of Morley v Statewide Tobacco Service Ltd (1992)ACLC 1233 is authority for the principle that:

Question

Quizplus · Accepted Answer

The case of Morley v Statewide Tobacco Service Ltd (1992)ACLC 1233 established the principle that a director's liability under s 588G of the Corporations Act is determined by what they ought to have known about the company's debts. This means that directors are expected to be vigilant in monitoring the financial affairs of the company and to take appropriate action if they become aware of any problems. Actual knowledge of the company's debts may be relevant in determining whether a director breached their duty, but it is not the only factor that is considered. Therefore, option B is the correct answer.

The Case of Morley V Statewide Tobacco Service Ltd (1992)ACLC