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An analysis of case involving director duties in the Corporations Act, 2001 (Cth)

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Added on  2021-06-17

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May 11, 2018 [Jubilee Mines NL v Riley [2009] WASCA 62] 2018 Holmes University (Student Details: ) [Jubilee Mines NL v Riley [2009] WASCA 62] An analysis of case involving director duties Introduction The Corporations Act, 2001 (Cth) is the most important legislation for any company in Australia. This discussion is mainly focused on the application of director duties as had been found in the case of Jubilee Mines NL v Riley [2009] WAS

An analysis of case involving director duties in the Corporations Act, 2001 (Cth)

   Added on 2021-06-17

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[JUBILEE MINES NL V RILEY [2009] WASCA 62]An analysis of case involving director dutiesHolmes University(Student Details: )
An analysis of case involving director duties in the Corporations Act, 2001 (Cth)_1
May 11, 2018[JUBILEE MINES NL V RILEY [2009] WASCA 62]Introduction The Corporations Act, 2001 (Cth) is the most important legislation for any company in Australia.This legislation covers nearly all the aspects of the companies and sets out basic guidelines onhow the companies are to be managed. One of key aspects given under the quoted legislation isthe director duties. These duties have been set out under Part 2D.1 of this legislation (Williams,Bingham and Shimeld, 2015). The director duties cover duty of good faith, use of position anduse of information, amongst the other duties. Where these duties are not followed by thedirectors or the officers on whom these duties are levied, both civil and criminal liabilities can beraised for the breaching person, depending upon the particular section being contravened(Latimer, 2016). This legislation not only offers punishments but also puts forth defences wherethe spirit of quoted legislation is followed, along with the words of the law. This discussion ismainly focused on the application of director duties as had been found in the case of JubileeMines NL v Riley [2009] WASCA 62. This was a case which covered the questions being raisedon the directors having fulfilled the duties imposed on them through the Corporations Act, alongwith other matters. Holmes University | / Introduction2
An analysis of case involving director duties in the Corporations Act, 2001 (Cth)_2
May 11, 2018[JUBILEE MINES NL V RILEY [2009] WASCA 62]Background of Jubilee Mines NL v RileyRiley was a shareholder and a director of Jubilee Company, which was basically a small listedgold exploration company (Duffy, 2012). Even though he had resigned from the post of directorin 1993, he continued to be a shareholder of the company. During the mid part of 1994, presenceof nickel was identified while drilling was being done on a Jubilee tenement. The managingdirector and geologist of the company made a decision that the company would carry out nofurther exploration at this particular tenement of company as the focus of the company was onthe gold related activities only. This was done without the co-directors of company beinginformed or the ASX being informed of this decision, despite nickel having being found at thistenement (Lavan, 2009). The disclosure of drilling results was made after some years to the ASX. By that time, Riley hadsold off his shares ignoring the nickel data. He then claimed to have suffered damages as a resultof the company being in contravention of the continuous disclosure requirements with regards tothis nickel discovery. It was contended by Riley that even though the results of drilling did nothighlight or present commercially significant nickel resource. He claimed that only the resultedhad been indicated in the results but there was a lack of potential for a further exploration ofnickel being stated. This led to his claims in the court, which initially were presented before thetrial court and later on were appealed (Lavan, 2009). This involved contentions being raisedagainst directors for breaching their director duties, for not carrying out the proper disclosures(CCH Australia, 2009). Holmes University | / Introduction3
An analysis of case involving director duties in the Corporations Act, 2001 (Cth)_3

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