" just wonder if reporting updates to the ASX shareholders will be on the top 10 priority list. "
Perhaps it all comes down to what Klaus's and Susmit roles are 1f1.
Expectations for a foreign director
In turning its attention to Mr Shao’s alleged breach of his director duties, the Federal Court noted that the fact Mr Shao did not understand English did not excuse him from his duty to exercise care and diligence when scrutinising each prospectus document. As a director, Mr Shao was required to inform himself fully of the content of the prospectus documents to determine their accuracy. Accordingly, Mr Shao was required to obtain a full Chinese translation of each prospectus document prior to signing or authorising their release in order to adequately discharge his duty.
The fact that Mr Shao did not understand Australia’s legal requirements and had relatively little experience in the governance of public companies did not mean he could just delegate entirely to or rely entirely on the advice of the two Australian directors and professional advisers for the performance of his duties. The Federal Court stated Mr Shao was required to place himself in a position which would allow him to actively participate in company affairs to a standard expected of a responsible managing director and chief executive officer of Sino. In failing to do so, Mr Shao’s conduct had led to Sino’s contraventions of the Act and exposed the company to the imposition of civil penalties for the contraventions.
Key takeaways foreign directors of Australian companies
This case demonstrates that Australian courts will hold foreign directors of Australian companies to the same standards as their Australian counterparts, regardless of any lesser proficiency with the English language and Australian laws. The decision is another timely reminder to all foreign directors of Australian companies and Australian companies with overseas-based directors (as well as overseas companies considering listing on the ASX) to be familiar with the duties and obligations required of directors of Australian companies under the
Corporations Act.
https://www.holdingredlich.com/corp...-to-foreign-directors-of-australian-companies
I will be attending the meeting and making my thoughts known on the matter.
Raider
