“Honesty” and Directors

The provisions of Section 52A of the Superannuation Industry (Supervision) Act 1993 require the Directors of corporate Trustees of regulated superannuation trusts to act honestly in relation to matters pertaining to the trust.

The requirement for company Directors to “act honestly, as a requirement for exoneration from civil penalty for contravention of the Corporations Act 2001 was reviewed by the Supreme Court of New South Wales in the “James Hardie Case”.

Australian Securities and Investments Commission v Macdonald (No 12) [2009] NSWSC 714; (2009) 259 ALR 116; (2009) 73 ACSR 638; 4 BFRA 1.

A transcript of this case can be found here.

[2009] NSWSC 714 p1

[2009] NSWSC 714 p2

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