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

Question

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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, rather than their actual knowledge. This means that directors have a duty to inform themselves of the company's financial position and take appropriate steps to prevent insolvent trading, even if they were not explicitly aware of the company's debts at the time.

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