Australian Securities and Investments Commission v Drake (No 2) [2016] FCA 1552

FEDERAL COURT OF AUSTRALIA

Australian Securities and Investments Commission v Drake (No 2) [2016] FCA 1552 File number: QUD 596 of 2014

Judge: EDELMAN J

Date of judgment: 23 December 2016

Catchwords: CORPORATIONS – directors' duties – s 180(1) of the Corporations Act 2001 (Cth) – onus of proof in relation to proving alternative courses of action in s 180 of the Corporations Act CORPORATIONS – directors' duties – s 181 and s 182 of the Corporations Act – test for proving improper purpose – test for causation TRUSTS AND TRUSTEES – breach of trust – nature of trustee's duty of care – whether trust deed can exclude equitable obligation or obligation in s 22 of the Trusts Act 1973 (Qld) to act as a prudent trustee

Legislation: Corporations Act 2001 (Cth) ss 180(1), 180(2), 181(1), 181(1)(b), 181(2), 182(1), 182(1)(a), 1317S, 1318(1) Evidence Act 1994 (Cth) s 140 Trustee Act 1925 (ACT) s 14A(1) Acts Interpretation Act 1954 (Qld) s 14B(3)(b) Trusts Act 1973 (Qld) ss 4(1), 4(4), 5, 10, 20, 21, 22, 22(1), 22(1)(a), 23(3), 24, 24(1), 24(1)(a), 30B, 30B(a), 31, 60, 61, 65, 79, 111; Div 1, Pts 3, 4, 5, 6, 7, 10 Trusts (Investments) Amendment Act 1999 (Qld) s 5 Trusts (Investments) Amendment Bill 1999 (Qld) Trustee Act 1925 (NSW) s 14A(1) Trustee Act 1907 (NT) s 6(1) Trustee Act 1936 (SA) s 7(1) Trustee Act 1898 (Tas) s 7(1) Trustee Act 1958 (Vic) s 6(1) Trustees Act 1962 (WA) s 18(1) Trustee Act 1925 (UK) ss 3(1)(ii), 31, 69(2)