Reference no: EM131458067

1. Assume that Mr. Shift's family company subsequently goes into liquidation. In her report to ASIC, the liquidator states that the secured creditors have been repaid in full, but the unsecured creditors will not receive more than 20 cents in the dollar. The liquidator does not find any evidence of wrongdoing on the part of Mr. Shift or any of his fellow directors. What (if any) ramifications does this have for Mr. Shift assuming that ASIC's records show that Mr. Shift has, over the last nine months, had a similar track record with two other small proprietary companies?

2. Do you agree with the proposition that "non-executives don't run the company's business from day to day and only ever contribute at board meetings and for this reason they serve no real purpose."

3. What powers does the board of directors have? What is the source of their powers?