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ARTICLE · 30 NOVEMBER 2011

Continuous Disclosure - What Duties do Directors Have?

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A director involved in a company's contravention of section 674(2) of the Corporations Act also contravenes the Act.

AustraliaCorporate/Commercial Law
Anthony Addison
Anthony Addison
Li-Jean Chew
Li-Jean Chew

Introduction  

Listed Australian companies have an obligation to keep the market continuously informed, subject to certain limitations, about any information that a reasonable person would expect to have a material effect on the price or value of their securities.  Failure to do so may put the company in contravention of section 674(2) of the Corporations Act 2001 (Cth) (Corporations Act).

A director involved in a company's contravention of section 674(2) of the Corporations Act also contravenes that section of the Corporations Act.


Also a director may be in breach of their duties under section 180 of the Corporations Act to exercise their powers and discharge their duties with the degree of care and diligence that a reasonable person would exercise if they:

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