Issues facing directors in corporate groups

Article Abstract:

Australian courts are recognizing the complexity in which directors of corporate groups must make decisions and are leaning toward a more objective test for determining breaches of fiduciary duty. Both Equiticorp Finance Ltd v. Bank of New Zealand and Gamble v. Hoffman were decided using an objective approach, where directors' actions are viewed as being reasonable if seen as beneficial to the group of companies as a whole. Combining this with the standard subjective test, where a director must act only for the company's interests, may provide the best protection against breach of duty.

Management, Cases, Affiliated corporations, Fiduciary duties

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Farewell to the sleeping director - the modern judicial and legislative approach to directors' duties of care, skill and diligence

Article Abstract:

Australian cases involving the duties of diligence, care and skill of corporate have spurred reforms in corporate law. Reforms are occurring in the direction of greater responsibility, leading to the decision of AWA Ltd v Daniels. Legislative reforms have been proposed by different groups, and the issue of instituting a business judgement rule is being considered.

Analysis, Business judgment rule

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Directors' duties to prevent insolvent trading

Article Abstract:

The author examines Australian laws and cases which impose a high standard of care on company directors to act in the best interests of their firm. The article includes guidelines for directors, with emphasis on the insolvent trading provisions in the Corporations Law.

Australia, Interpretation and construction, Bankruptcy law, Corporation law

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