ASIC v Padbury Mining Limited: Breach of Directors' Duties

Corporations Law;
Group Assignment
No. 5:
ASIC v Padbury Mining
Limited (2016) FCA 990
Group Members:
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Parties to the Case
Plaintiffs: Australian Securities
Investments Commission (ASIC)
Defendants: Padbury Mining Limited;
Mr Gary Stokes and Mr Terence Quinn
 Judge: Siopsis J, of the Federal Court of
Australia
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Case Introduction
Background of the Case
Padbury Mining Limited a public company in Australia
had been trying to develop a deep-water port at
Oakajee in Western Australia and a railway network
between 2013 and early 2014. On 8th April 2014,
Padbury entered into a shareholders agreement with
several parties including Superkite Pty Limited that
agree to provide a $6billion funding to the
construction of the Oakajee project
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Facts of the Case
 Padbury announced the ASX to the market that it had a
successful secured a $6Billion funding for the Oakajee
project but didn’t disclose the underlying pre-conditions
upon which the funding was obtained as well as the
company responsible for the funding obligation.
 - Padbury requested a halt on the company's trading
shares before the announcement
 - ASIC sued Padbury together with two of its directors; Mr.
Gary Stokes and Mr. Terence Quinn. Both directors were
responsible for the drafting of the publication and
authorization of its release
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