So you think you're a good director? Try this quick quiz
You are a director of a publicly listed company. You are intelligent, experienced, conscientious and honest. The company has a competent and qualified CFO. It retains one of the Big Four accounting...
View ArticleASIC v Healey - penalties
Further to his earlier judgment, on 31 August 2011 Middleton J imposed the following penalties:Mr Scott, the CEO - $30,000 penalty Mr Nenna, the CFO - disqualification ban for two years, no penalty the...
View ArticleDirectors duties, stockmarket integrity and the High Court
The High Court will now consider two cases involving critical issues relating to market disclosure. The High Court's decisions are anticipated to be agenda-setting.Earlier this week, the High Court...
View ArticleBridgecorp - clever tactic wreaks havoc
The scenario was familiar enough - a big corporate collapse leaves massive losses and many claimants on the one hand and a board of directors whose limited D&O cover was being rapidly eroded by...
View ArticleDirectors - accessorial liability
The case, Young Investments Group Pty Ltd v Stripe Capital Pty Ltd [2011] FCA 1147 ("Young Investments") re-affirms the Federal Court's reluctance to arrive at findings of accessorial liability of...
View ArticleCompany officers face new penalties for inadequate due diligence
Under new OHS laws scheduled to commence on 1 January 2012 in most states and territories, company officers will be required to exercise ongoing "due diligence" to ensure that the company meets its...
View ArticleCourt orders production of D&O insurance policies
In the recent case of BOS International (Australia) Ltd v Babcock & Brown International Pty Ltd [2011] NSWSC 1382, Justice Rein ordered the defendant (B&B) to produce to the plaintiff (BOSI)...
View ArticleHong Kong Stock Exchange gives a boost to IPO and D&O insurers
Next year, companies listed on the Hong Kong Stock Exchange will be expected to have insurance cover for their directors, and if they don't comply, they will have to explain themselves.Recent...
View ArticleAnti phoenix legislation provides "comfort" for "honest directors"
On 21 November 2011, a Bill was passed by the House of Representatives with a view to counter phoenix activities by company directors – that is, preventing the practice of winding up a company and...
View ArticleSteigrad prompts separate limits for defence costs
Insurers are introducing enhancements to their D&O and professional liability policies for defence costs in response to the Steigrad decision (click here to read more). In particular, separate...
View ArticleCriminal liability reforms – directors catch a rare break
Company directors and their insurers will welcome the proposed reforms announced by the Federal Government on 27 January 2012. The exposure draft of the Personal Liability for Corporate Fault Reform...
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