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Australia misleading conductcontinuous disclosuredirectors duties

Australian Securities and Investments Commission v Fortescue Metals Group Ltd

ASIC v Fortescue Metals Group Ltd (No 2) [2011] FCAFC 19; (2011) 190 FCR 364
JurisdictionAustralia
CourtFull Court of the Federal Court of Australia
Year2011
StatusPersuasive authority

Key Principle

The Full Federal Court held that describing inchoate framework agreements as legally 'binding' was misleading or deceptive conduct and a breach of continuous-disclosure obligations, and that a director knowingly involved in the company's contraventions was personally liable — a decision subsequently reversed by the High Court, which held the statements were not misleading.

Area of Law

insolvency

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