Directors' Fiduciary Duties in the Western Australian Supreme Court - Again

Abstract

This article (published in (2014) 32 Company & Securities Law Journal 362) analyses an interesting judgment of Pritchard J in the Western Australian Supreme Court concerning directors' fiduciary duties (in the context of alleged fiduciary duties between the state and Aboriginal people). Pritchard J's analysis of the duty to act in good faith in the interests of the company is particularly interesting in terms of its incorporation of the concept of a decision that no reasonable board could have reached. The article shows that this concept can be equated with rationality and links it with jurisprudence concerning the business judgment rule.

Keywords: directors' duties, good faith, business judgment rule, fiduciary duties

JEL Classification: K22