Breach of Directors Duties under Corporation Act 2001 - ASIC v Cassimatis (No. 8) [2016] FCA 1023

BREACH OF
DIRECTORS
DUTIES
Australian Securities and
Investment Commission (ASIC)
v Cassimatis (No. 8) [2016] FCA
1023

DIRECTORS DUTIES
(CORPORATION ACT 2001)
 Section 180- Observe due care and
diligence
 Section 181- To act in good faith and
best interest of the company
 Section 182- to not misuse position
 Section 183- To not misuse information
 Section 184 – reckless breach of Section
181-183

CONSEQUENCES OF
BREACH
 Section 181- Civil penalty (Section
1317E)
 Section 182- Civil penalty (Section
1317E)
 Section 183- Civil penalty (Section
1317E)
 Section 184- Criminal offence

FACTS OF THE CASE
 Mr Cassimatis (defendant) was the
director of Storm Financial Limited
(Storm)
 Storm provided Financial services in
accordance to a model developed by
the director
 The model involved the use of equity in
home to get a loan for investment
 Severe losses were suffered by the
consumers through the use of the model