Director Duties in ASIC v Flugge & Geary [2016] VSC 779

Director duties as was applied in the
case of ASIC v Flugge & Geary
[2016] VSC 779
Corporations Law

Introduction
 A company is given the status of separate legal entity.
 The company is thus a separate person in the eyes of law
(Talbot, 2015).
 However, the affairs of the company, be its operations or
its conduct, is undertaken by different people.
 The Corporations Act, 2001, which is an act of
commonwealth, puts some duties on directors and the
key officers of the company, and even on employees at
some instances (Langford, 2015).
 One of the recent cases, where this matter of director
duties was analyzed by the court is the case of ASIC v
Flugge & Geary [2016] VSC 779.

Facts of this case (case introduction)
 The key issues of this case started from the transactions which
were brought before the Supreme Court of Victoria by ASIC in
the end of 2007.
 This case was started against six of the erstwhile directors and
officers of AWB Limited.
 The key case, in context of theme of this discussion, was
related to the contraventions of section 180 and section 181 of
Corporations Act (Supreme Court of Victoria, 2018).
 . The main contention raised by ASIC was regarding AWB’s
wheat trade with Iraq-based Company.
 This was in addition to the company misusing the United
Nations policy of Oil for Food Program, which had been
created in 1995.