Which of the following statements is correct?
A)the Corporations Act contains an extensive amount of legal prescription concerning the role of the board as a whole
B)the legal framework for the operation of the company is contained in the provisions of the Income Tax Assessment Act 1936
C)the company,and its resources,are owned by the directors
D)the board of directors acts as the custodian and manager of the company's resources

Question

Quizplus · Accepted Answer

The statement "the board of directors acts as the custodian and manager of the company's resources" is correct. The Corporations Act does contain legal prescription concerning the role of the board, but it is not an extensive amount. The provisions of the Income Tax Assessment Act 1936 relate to taxation, not the overall legal framework for the operation of the company. The company and its resources are not owned by the directors, but rather by the company itself as a separate legal entity.

Which of the Following Statements Is Correct