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ASSIGNMENT:
As established in case law, (e.g. Re National Safety Council of Australia (1989) 7 ACLC 602), and also stated in the Corporations Act 2001 (Cth), liquidators must not have a conflict of interest in exercising their powers and discharging their duties. Based on this:
(a) Discuss a liquidator's legal powers and duties with special reference to the duty to avoid conflict of interest.
(b) Explain whether the current statutory and common law powers and duties of a liquidator are sufficient to prevent a liquidator from taking advantage of their position and acting in their own best interest, rather than that of the company's stakeholders. Give reasons for your answers referring to the Corporations Act 2001 (Cth) and/or cases as relevant to substantiate your arguments.
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