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Australia Leading Case duty of care skill diligence s174

ASIC v Healey

(2011) 196 FCR 291
JurisdictionAustralia
CourtFederal Court of Australia
Year2011
StatusBinding authority

Summary

Directors have a non-delegable duty under s.180 Corporations Act to read, understand and apply their minds to the company's financial statements before signing them.

Key Principle

directors' duty of care under s.180 Corporations Act; directors must read and understand financial statements

Area of Law

Commercial and Corporations Law

Related Cases

ASIC v Hellicar (2012) 247 CLR 345

Directors of James Hardie's special purpose committee breached their duty of care by approving a misleading ASX announcement about asbestos compensation funding.

Sons of Gwalia Ltd v Margaretic (2007) 231 CLR 160

Shareholders with misleading-conduct claims against an insolvent company are not subordinated to ordinary creditors and rank equally with them in the winding-up.

Garcia v National Australia Bank Ltd (1998) 194 CLR 395

A bank taking a guarantee from a spouse surety is fixed with constructive notice of undue influence where it fails to ensure the surety received independent advice.

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