Directors and Officers held personally liable for contraventions committed by the company: Two Senior executives disqualified from managing a public corporation for 12 months

The federal court has handed down a judgement for two senior executives of the Star Casino who were found guilty of not exercising due diligence. The duty of care that Directors and Executives must exercise in their role is outlined in section 180(1) of the Corporations Act 2002 (Cth).

Ignoring the red flags is no longer just a risk to the company but could also see Directors held personally liable. Parliament believes that enforcement both by the company and individually creates greater corporate compliance. Many directors fail to see the red flags due to a few factors like risks being buried in complex documentation or failure for management to bring it to the Director’s attention.  This does not absolve Directors of risk but rather demands that they must find ways to both guide and monitor management to identify and control the risks.

What do Directors need to know about Due Diligence?

Due diligence is undertaken by acquiring the knowledge of legislation and responsibilities required to meet their statutory obligations. For example, Directors would need to have knowledge of the current workplace health and safety laws and the risks in the business.

Due diligence is exercised by demonstrating that you are guiding and monitoring how this is managed in the company. For example, Directors are responsible for ensuring there is a system set up to identify and control and workplace health and safety risks in the workplace that pose a risk to the business and employees.

Why it is important?

Understanding your obligations and how to simplify compliance can reduce your risk and save you time.

Having clear systems in place to identify, monitor and control risks can save not only the business but also you individually being held liable.

How can we help?

At HR Dynamics, our goal is to simplify compliance and reduce your risk—without burying you in paperwork.

We help businesses across Australia with:

• Award interpretation and correct pay rates
• Risk-based audits of your payroll, payslips and time records
• WHS risk registers and compliance systems
• Contract and handbook development
• Toolbox talks and staff training, including the new sexual harassment requirements for QLD
• Ongoing HR support to keep you covered all year round

If you're unsure whether your systems would pass a Fair Work audit, now is the time to act—not when it's too late.

📞 Let’s Make Sure You’re Covered

We offer compliance checks, practical advice and real-world solutions to make sure your business is protected and your people are paid fairly.

Need help?

📧 hello@hrdynamics.com.au

📞 0438 735 926

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