Federal Court’s Guidance on Directors’ Duty to Exercise Care and Diligence Is Timely Amid Continued Pandemic Disruptions

Last week, the Australian Federal Court provided some further guidance on directors’ duty to exercise due care and diligence in performing their roles and the potential ramifications of breaching s 180 (1) of the Corporations Act 2001 (Cth) (Act). The declarations made by the court and the pecuniary penalties imposed against the defendant director serve as a reminder of the scope of relief available to the Australian Securities and Investments Commission (ASIC) in its pursuit of corporate misconduct.