Company Law Essay: Director's Duties, Stepping Stone Approach and Act

This essay examines the duties of company directors in Australia, focusing on the provisions of the Corporations Act 2001 (Cth) and the 'stepping stone' approach. It explores the potential inconsistencies between the statutory requirements and the concept of limited liability for directors. The discussion references key cases such as ASIC v Cassimatis (No 8) [2016] FCA 1023 and The Bell Group Ltd (in liq) v Westpac Banking Corporation [No 9] [2008] WASC 239, to analyze how these two perspectives can be harmonized, particularly through the application of the business judgment rule as outlined in s 180(2) of the Act. The essay concludes that while there may appear to be a conflict between the director's duties and the stepping stone approach, the Act provides mechanisms for balancing these, particularly when considering deliberate misconduct versus unintentional breaches. Defenses provided in the Act are also considered to demonstrate alignment with the stepping stone approach.