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Australia duty of care skill diligence s174

Vrisakis v Australian Securities Commission

(1993) 9 WAR 395
JurisdictionAustralia
CourtSupreme Court of Western Australia (Court of Appeal)
Year1993
StatusBinding authority

Summary

A director must bring an inquiring mind to board decisions and cannot rely blindly on management representations.

Key Principle

directors' duty of care; director must bring an inquiring mind to board decisions and cannot rely blindly on management

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.

Bell Group Ltd (in liq) v Westpac Banking Corporation [2012] WASCA 157

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.

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.

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