ASIC v Hellicar- Corporate Social Responsiveness

In the year 2012 an appeal was filed against the company that each director of the company is involved in misleading of the shareholders of the company and also the stakeholders by non performance and breach of the duties & responsibilities of the director. Appeal included that the Directors were liable for the funding of the Asbestos disease liability to which they were short of one billion dollars. The directors also did not follow the board minutes and also they did not formally record the whole meeting . The directors did not inform about the meeting that was suppose to take place and later they were misleading the facts. The directors were asked by the shareholders and other persons to inform and give the true details of the meeting and convey all the details required to be known by them. The directors by misusing their position, did not disclose any certain details. They started misleading the shareholders and manipulating facts.

Under the Corporation Act 2001 of Australia, there are majorly four responsibilities of the directors mentioned. Firstly, it is the duty of the directors to act with due care and diligence. Secondly, directors must always act in good faith of the company and in best interest of the company. Thirdly, it the main duty of the directors to not misuse the position as directors. Lastly and fourthly, they must not use the information of the company in an improper way.

Apart from the above duties of a director, there are many more duties and responsibilities for which directors are obligatory under the Companies Act 2006. The directors must always promote the success of the company. If there are many directors in one single company then they must avoid the conflicts which may arise while making decisions or any management related activities. They must not indulge in any activity which involves any benefits from third party. There are many duties to which a director of a company is obliged with. The directors must perform his duties in accordance to the laws and the duties which are specifically mentioned in the article of association i.e. AOA of the company. Every company although have difference in there AOA but most of the duties and responsibilities are almost same in every organisation.