Breach of Directors Duties
When directors breach the duties that they owe to the company it can consider bringing civil against the directors. That is so because the directors manage the company, and the duties are owed to the company as opposed to the individual members.
Generally, relief may be available for a breach of director's duties in common law, equity and under the Corporations Act 2001 (Cth).
Potential Scenarios - Breach of A Director's Duty
Breach of Director's Duty Disputes:-
- when a director makes a secret profit;
- when a director transfers a lease of the company to him or herself;
- when directors transfer company property to friends and family contrary to their fiduciary obligations.
Let Us Help You
- Understand the obligations owed by directors to the company including the duty of care, fiduciary duties, obligations regarding good faith, to act for a proper purpose and to prevent insolvent trading.
- Pursue your rights against directors who have breached their obligations by relying on the common law, equity and provisions in the Corporations Legislation such as ss 182 - 183 etc.
- Seek damages, compensation, an account of profit, rescission of contract, the return of property (or imposition of a constructive trust) or an injunction (as appropriate).
* This content does not purport to give legal advice. Readers must obtain their own legal advice, that applies to the particular circumstances of their case, before taking any action at all.