Probably best just to alert ASIC of you think breach of...

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aruc6393

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27/05/23

01:13

Post #: 67990971
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Originally posted by LongCleanEnergy: ↑

The items you list here you/we know about (and I could add to the list), but remember it is not what you know, it is what you can prove in court.

A lot of these items are difficult to prove and are all grey areas. Without doubt it would require some serious legal resource to mount and present a case. Who is paying for that? Also note these are never short cases (given the complexity) - they go on for years.

Is there are large pot of gold at the end of the line for a successful case? Absolutely not. There is nothing in the tank.
You look at the majority of the successful challenges of Directors duty breach they are generally against large corporates with serious balance sheets and cash piles - not a 2 bit shit show operation like DEL. Case in point - James Hardie, Centro, Commonwealth Bank just to to list a few.

Does Del need a distraction like this at this juncture? Absolutely not.

Directors can be held personally liable, but these guys would hold little assets personally, hence the use of family trusts holding their shares (among other assets).

Putting the above aside I suspect a Breach of Duty of care and diligence, Fiduciary duty, and a Breach of Continuous Disclosure obligations would be the focus areas - but again its never easy, and I highlight this by the below example in ASIC v Mariner Corporation Ltd (2015) 327 ALR 95; [2015] FCA 589:

In ASIC v Mariner Corporation Ltd, the court found Mariner's directors had not breached their duty to act with due care and diligence by making a ''reckless decision'' to announce a takeover bid for Austock without securing funding. The court was satisfied the directors had assessed the risk of making the takeover bid against the potential benefits. The fact the bid failed for lack of finance was not due to the director's lack of reasonable care.

In my view, going after them for a breach of Directors duties would be throwing good money after bad. I simply put too much trust in management and my position sizing was far to big.

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Probably best just to alert ASIC of you think breach of corporations act has occured. Doesnt hurt to do so.

DEL Price at posting: 3.2¢ Sentiment: None Disclosure: Held
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0 Great analysis

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