The Development and Application of the Directors’ Duty of Care and Diligence Rule in Australia

51 Pages Posted: 19 Oct 2016

See all articles by Attila Balogh

Attila Balogh

University of Melbourne - Department of Finance

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

Balogh, Attila, The Development and Application of the Directors’ Duty of Care and Diligence Rule in Australia (April 11, 2012). Available at SSRN: https://ssrn.com/abstract=2852066 or http://dx.doi.org/10.2139/ssrn.2852066

Attila Balogh (Contact Author)

University of Melbourne - Department of Finance ( email )

198 Berkeley Street
Carlton, VIC 3010
Australia

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