Gore v ASIC: Violation of Director Duties in Corporations Law

Corporations Law

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TABLE OF CONTENTS
INTRODUCTION...................................................................................................................2
FACTS OF THE CASE..........................................................................................................3
VIOLATION OF DUTIES........................................................................................................3
JUDGEMENT OF THE COURT............................................................................................5
RELEVANCE OF THE CASE................................................................................................6
CONCLUSION.......................................................................................................................7
BIBLIOGRAPHY....................................................................................................................8

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INTRODUCTION
In this report, Gore v ASIC1 case will be analysed in order to identify the director duties
that were violated in this case. The provisions of director duties are given under the
Corporations Act 2001 (Cth) (“CA”).2 Various guidelines are issued in this Act in order to
make sure that the powers of directors must not be used for improper purposes which
could harm the interest of the company. These duties impose mandatory obligations on
the directors in regards for ensuring that they must not violate these provisions or else they
could face civil or criminal consequences. This report will evaluate the facts of Gore v
ASIC in order to identify the factors that lead to violation of director duties. This report will
also evaluate the key duties which are violated and analyse the circumstances that lead to
the violation. The decision made by the court along with an evaluation of its relevance in
regards to companies operations in Australia will be analysed in this report as well.
1 [2017] FCAFC 13
2 Corporations Act 2001 (Cth)