The Development and Application of the Directors’ Duty of Care and Diligence Rule in Australia
51 Pages Posted: 19 Oct 2016
Date Written: April 11, 2012
Abstract
This paper places Australian directors’ duties legislation in the corporate governance context. A discussion of the general principles and the sources of duties is designed to offer an insight into the various areas of law that govern the conduct of company directors. Focusing on directors’ duty of care and diligence, we offer a detailed examination of the wording of the first Australian statutory provision. Further, we provide a comprehensive analysis of how the law evolved over the past two centuries. An exhaustive review of published cases provides the backbone of the study to highlight the interaction between statutory provisions and the evolution of directors’ duties through Australian case law. We review recent cases to provide an insight into the state of the art in Australia. Exploring the development of the law through recent cases allows the consolidation of current knowledge into a concise set of learnings.
Keywords: Corporate Governance, Board of Directors, Directors' Duties, Duty of Care
JEL Classification: G32, G34, K22
Suggested Citation: Suggested Citation