Dystopian Accessorial Liability’ or the End of ‘Stepping Stones’ As We Know It?

37(5) Company and Securities Law Journal, 2020

U of Melbourne Legal Studies Research Paper No. 882

11 Pages Posted: 29 May 2020 Last revised: 1 Jun 2020

Date Written: April 22, 2020

Abstract

In Australia a mode of liability that has been known as ‘stepping stones’ has attracted extensive debate and criticism, partly due to the corporate regulator’s propensity to employ it in actions against directors. Stepping stones liability has traditionally consisted of two elements – a breach of the law by the company and a breach of duty by the relevant director in allowing or not preventing the breach. However, the very recent judgment of the Full Federal Court in Cassimatis v Australian Securities and Investments Commission confirms that ‘stepping stones’ is really just a straightforward application of the statutory duty of care (or other duty) to the facts of each particular case.

Keywords: Company Law; Duty of Care; Directors’ Duties

JEL Classification: K10; K22

Suggested Citation

Langford, Rosemary Teele, Dystopian Accessorial Liability’ or the End of ‘Stepping Stones’ As We Know It? (April 22, 2020). 37(5) Company and Securities Law Journal, 2020, U of Melbourne Legal Studies Research Paper No. 882, Available at SSRN: https://ssrn.com/abstract=3583169 or http://dx.doi.org/10.2139/ssrn.3583169

Rosemary Teele Langford (Contact Author)

University of Melbourne - Law School ( email )

University Square
185 Pelham Street, Carlton
Victoria, Victoria 3010
Australia

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
80
Abstract Views
1,541
rank
332,162
PlumX Metrics