Aspects of Corporate Delegation, Reliance and Financial Reporting: Lessons from Australian Securities and Investments Commission v Healey (2011) 29 ACLC 11-67

This case note assesses the impact of the recent decision in the Federal Court of Australia on the duties of company directors with regard to financial reporting. The case is important because it established Negligence as a new test for determining a contravention of s 344(1) of the Corporations Act 2001 (Cth). Up to this point in time an offence under the Act had to be the result of Dishonesty. For this reason, the case imposes a greater duty of care on company directors with regard to reliance on delegation in meeting their obligations under the Act.; ;