BREAKING: the High Court has just held that a person who is found on the evidence to be “the overall boss” or have “overall responsibility” of the business of a company, IS AN OFFICER of the company for the purposes of the para (b)(ii) definition in s 9 of the Corporations Act 2001 (‘the Act’).
It does not matter that the person:
– ceased being an officer or director 6+ months ago; or
– did not hold a recognised position with rights and duties; or
– did not ever hold an officer or director position.
Case name: ASIC v King  HCA 4
ASIC argued that Mr King breached his duties as an ‘officer’ under s 601FD of the Act – otherwise called the duties of an officer of a responsible entity.
Virtual CFO’s, accountants, lawyers and consultants should take particular notice of this matter and make sure that you are not the overriding decision maker that could breach the relevant officer and director duties.