The following question requires you to look at the duties of a director.

Elizabeth is a nurse, who has inherited a substantial shareholding in Truckers Ltd from her father. She was appointed to the board of directors at Truckers Ltd. The board passed a resolution requiring cheques in excess of $2,000 to be signed by two directors. On various occasions:

i.                The managing director asked to countersign cheques attached to invoices from Gerarco for repairs to Fluodrive Transmissions. The company's vehicles were all Fiats and did not use Fluodrive. All payments were misappropriated - divided between the managing director and Geraco;

ii.               The managing director informed her that most directors would be overseas during the next couple of weeks. He then asked her to sign a book of blank cheques. He used some of the cheques to pay his own debts;

iii.              She signed an 'interim balance sheet' presented to her by the managing director. The balance sheet was used to solicit a loan from a finance company. The stock figures were inflated. This overvaluation could have been discovered by looking in the company's ledgers or by checking the physical stock of fuel, tyres and lubricants. Elizabeth knew the correct procedure necessary to check the amounts of these goods. The loan was made but was called in early when the lender discovered the truth. As a result, the company suffered a loss.

Has Elizabeth exposed herself to any liability pursuant to the Corporations Act (Cth) 2001?

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