ASIC v Narain: Analysis of Director Duties Breached

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Business and Corporations Law

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Table of Contents
Introduction................................................................................................................................2
Background of the case..............................................................................................................3
Director duties breached............................................................................................................3
Judgement of the case................................................................................................................4
Importance of this case...............................................................................................................5
Conclusion..................................................................................................................................7
References..................................................................................................................................8

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Introduction
The ASIC v Narain [2008] FCAFC 120 is a relevant case. This case has highlighted the role
which directors play in a company and regulations which affects their operations. This report
will analyse the principles given under the Corporations Act 2001 (Cth) (Act) in order to
understand the key provisions which companies and directors have to comply with. The
issues relating to misleading conduct was raised regarding financial products and services. In
this case, the duties and responsibilities of a Chief Executive Officer (CEO) and managing
director of a company were violated (Hargovan, 2010). The issue regarding making
misleading and deceptive claims is raised in this case as well. In this case Australian
Securities Exchange (ASX) was involved. The misleading clam was made to ASX. A suit
was filed against the misleading conduct of the company and its director by ASIC. There
were two key defendants in this case which include Mr Ravi Narain and Citrofresh
International Ltd (CIL). Section 1041H is the key provision which was violated in this case.
This section was violated while two letters were sent by the company to ASX. The facts of
case will be analysed and infringement of director duties will be discussed. The decision
made by the court and its impact will be assessed in the report as well.