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Australia duty to promote success s172unconscionabilityliquidation voluntary and compulsory

Bell Group Ltd (in liq) v Westpac Banking Corporation

[2012] WASCA 157
JurisdictionAustralia
CourtWestern Australia Court of Appeal
Year2012
StatusBinding authority

Summary

Directors of an insolvent company owe duties to creditors, and bank claims may be subordinated where unconscionable conduct is established in dealings with the insolvent company.

Key Principle

directors' duties when company is insolvent; duties owed to creditors; subordination of bank claims for unconscionable conduct

Area of Law

company

Related Cases

Shafron v Australian Securities and Investments Commission (2012) 247 CLR 465

A company secretary is an 'officer' under the Corporations Act and owes a duty of care and diligence under s 180 in performing their functions.

Barclay v Penberthy (2012) 246 CLR 258

The standard of care under s 180 of the Corporations Act is that of a reasonable person in the director's position, having regard to the corporation's circumstances and the director's office.

Grimaldi v Chameleon Mining NL (No 2) (Accessory) [2012] FCAFC 6

A third party who knowingly participates in a breach of fiduciary duty is liable as an accessory under the Barnes v Addy knowing assistance principle.

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