Dixon and Directors Duties
ASIC has commenced civil penalty proceedings in the Federal Court against Paul Ryan, director of Dixon Advisory & Superannuation Services Pty Limited, for alleged breaches of directors’ duties. (23-208MR)
ASIC alleges Mr Ryan breached his duties as a director by his involvement in decisions ASIC alleges were to the advantage of Dixon Advisory’s holding company, E&P Operations Pty Ltd, and by failing to properly consider the interests of Dixon Advisory’s creditors. Mr Ryan was also a director of E&P Operations.
ASIC Deputy Chair Sarah Court said: “Directors have responsibilities under the law to act in the best interests of their company, and this includes considering the interests of creditors when the company is facing insolvency.”
Why you should care
- Directors of Licensees are focused on s912A and s920C, but they must also be conscious of the obligations and duties they incur as a Director.
- The consequences for contraventions of these obligations ( covered in s180—184 of the Corporations Act) can be pursued independently of any actions for contraventions of license obligations.
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