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Which statement best describes the proper purpose rule that relates to directors duties

A director of a company must exercise their powers with restraint
A director of a company must only exercise powers for the purposes for which they are conferred.
A director of a company must only exercise powers how a reasonable person would exercise them
A director of a company must not exercise powers for the purposes for which they are conferred.

Correct - Your answer is correct.

Wrong - Your answer is wrong.

Detailed Answer

Correct answer: (B)
A director of a company must only exercise powers for the purposes for which they are conferred.

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