The case of: Morley v Statewide Tobacco Service Ltd (1992)10 ACLC 1233 is authority for the principle that:

Question

Quizplus · Accepted Answer

The case of Morley v Statewide Tobacco Service Ltd established all three principles mentioned in the options. Firstly, the court held that ignorance of the company's position is not a valid excuse for a director's failure to prevent insolvent trading. Secondly, it established that the test for a director's liability under section 588G of the Corporations Act 2001 (Cth) is objective and not subjective. Finally, the court concluded that a director's liability for a company's debts is determined not by what they actually knew but by what they ought to have known in their capacity as a director. Therefore, all three options listed in the question are correct, making choice D the best answer.

The Case Of: Morley V Statewide Tobacco Service Ltd (1992)10