Tagged: directors’ liability

A wider ambit for the unreasonable director-related transactions provisions of the Corporations Act?

In Vasudevan & Ors v Becon Const & Anor [2014] VSCA 14, the Victorian Court of Appeal adopted a broader interpretation of the phrase ‘for the benefit of … a director’ in s 588FDA of the Corporations Act 2001 (the Act) than has been accepted in previous cases. The decision has the potential to widen the ambit of the unreasonable director-related transactions provisions of the Act.

When is a service not ‘professional’?

In 470 St Kilda Road Pty Ltd V Robinson [2013] FCA 1420 Kenny J considered the ‘professional services’ exclusion in a directors’ and officers’ liability insurance contract. The case provides a useful review of the authorities dealing with this exclusion, and is relevant in respect of interpreting exclusion clauses in insurance contracts more generally.