By Drazen Kozaric, Special Counsel on 27/06/2022 – [Source]
Two directors of a company breached their duties over the purchase of an insurance broking business contrary to its parent company’s directive that all future purchases should be approved by the board. One of the directors was also a director of the parent company, which guaranteed the payment.
Consequently, both companies were at risk of insolvency and the company defaulted on the payment. The Court found both directors guilty of breaching their statutory and common law duty to act in good faith in the best interests of their companies