Breach of Director's Duty: A Case Analysis of Clive Palmer and Queensland Nickel

Corporate Law Assignment

Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Conclusion..................................................................................................................................5
References..................................................................................................................................6

Introduction
Corporations Act 2001 acts as a guide to the corporate industry of Australia. Section 184 (1),
of the Corporations Act 2001 clearly states that if a director or officer is reckless then it can
be said that he or she has committed an offence. The section also reads that if the director
fails to duly exercise his/her powers and duties in good faith or for the interests of the
corporation, in such case also the director will be held guilty. Section 184(2) of the
Corporations Act 2001 states that if the director or any other employee of an organization use
their position for gaining direct or indirect advantage in their or someone else's favour will be
held guilty of committing an offense. Section 184 (3), states that the director or any other
employee of the organization will be held guilty of committing an offense if he or she uses
any kind of information for their personal favour or for someone else's favour (Wolters
Kluwer, 2018).
Discussion
The directors of an organization in Australia need to perform their duties and responsibilities
depending on both statutory as well as common laws that are made by the judges of the
country. The duties of the directors are framed in a manner that good governance is ensured
within organizations and that every activity being undertaken is for the interest of the
company (Bartholomeusz, 2014).
Case analysis
Clive Palmer took $200million out of the organization - Queensland Nickel, being solely run
by Palmer and his nephew Clive Mensink, in order to invest money on other flagship
businesses and donate to the Palmer United Party. Clive Palmer recklessly took the decision
to remove the money from Queensland Nickel and invest on other organizations which is also
referred as Palmer Empire by the administrators of Queensland Nickel. John Park from FTI