Speaking broadly, it can be seen that there have been three critical stages in he law”s conception of directors duties in Australia.
1) In re Equitable Fire Insurance Co. Ltd. (1925) Ch 407;
2) Daniels v Anderson (1995) 37 NSWLR 438;
3) The introduction of the statutory business judgment rule in s. 180(2) of the Corporation Act 2001 (Cth).
Each step is premised on the understanding that directors” duties impose a several form of liability. There is no cause of action known to the law which asks “did the board as a whole fail its management obligation to the company?”
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