Action in Australia for damages was taken against former directors and officers following investigations by administrators which revealed potential breaches of directors' and officers' duties under the Corporations Act and general law, including the duty to act with care and diligence, and in good faith for a proper purpose.
The judgement brings comfort to directors who hold D&O insurance policies, or those seeking to bring proceedings against directors of an insolvent company, provided the claim is not based in whole or in part on the company's insolvency (my emphasis) . However, the insurer has recently filed an appeal against the decision, which will be heard by a Full Court of the Federal Court later this year (2019)
