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Corporations Act - Relief Against Liability for Company Directors?

Discussion in 'Commercial Law Forum' started by T1m, 5 August 2014.

  1. T1m

    T1m Active Member

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  2. Sophea

    Sophea Well-Known Member

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    This provision is effective in providing directors relief against liability for a contravention of a civil penalty provision where the director has acted honestly and having regard to all the circumstances the court is of the view that the person ought fairly to be excused for the contravention.

    An example of when the court has afforded a defendant director relief against liability under this provision is the case of The Stake Man Pty Ltd v Carroll [2009] FCA 1415 which demonstrates that directors who can convince the court that they attempted to save the company and not gain from it, may be able to seek relief from the liability of paying amounts under insolvent trading claims. However the director may still have to bear the costs.

    http://www.worrells.net.au/eUpdateNewsletters/ArticleArchive/ViewArticleArchive.aspx?ArticleId=253
     
    John R likes this.

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