Reading up ASIC Directors duties and liabilities. General duties...

Reading up ASIC Directors duties and liabilities.

General duties
General duties imposed by the Corporations Act on directors and officers of companies include:

• the duty to exercise your powers and duties with the care and diligence that a reasonable person would have which includes taking steps to ensure you are properly informed about the financial position of the company and ensuring the company doesn’t trade if it is insolvent
  
  
• the duty to exercise your powers and duties in good faith in the best interests of the company and for a proper purpose
  

"The duty to exercise your powers and duties with the care and diligence that a reasonable person would have"

When CTL Directors and management decided to begin mining at Union Hill Gold Mine without first completing a detailed and thorough exploration and drilling campaign. How could they have a proper business plan for the Union Hill Gold Mine if they didn't know where the gold was or wasn't, in what quantities and gold grades?
IMO the CTL Directors didn't do their Due Diligence and cost us many many millions of dollars.

Company losses caused by breach of directors’ duties

"Another way you can become personally liable as a director is where, as a result of you having breached your duties, you have caused the company to suffer some loss.

Under these circumstances you may have acted illegally, be in breach of civil or criminal provisions of the Corporations Act 2001 and you may have to compensate the company for the loss."

In my opinion the CTL Directors are responsible for the debts incurred by beginning mining at Union Hill Gold Mine without due diligence or care.

The director's must go and ASIC must become involved and do a thorough investigation into the happenings over the past year.