In the matter of Australian Worldwide Pty Ltd

The case involved Australian Worldwide Pty Ltd, with the plaintiffs asserting that a director of the company had orchestrated the terms of and provided assistance to a counterparty in a supply agreement, aiming to cause the counterparty to terminate the agreement and have it awarded to a new company. This action was said to have led to the counterparty terminating the contract and entering a new supply agreement with the new company. The plaintiffs sought to hold the director liable for breaches of sections 181, 182, and 183 of the Corporations Act 2001 (Cth), and for breaches of fiduciary duties.

The court had to determine whether the director's actions constituted a breach of the statutory duties under the Corporations Act and whether they had breached fiduciary duties. The plaintiffs also alleged that the shareholders of the company and other individuals had caused the director to divert the supply agreement to another company, in which they had an interest. The court was required to decide if these individuals contravened statutory duties under section 79 of the Corporations Act and if they were liable for knowing assistance or knowing receipt for breach of fiduciary duties.

In its decision, the court found that the director had indeed breached statutory and fiduciary duties by facilitating the supply agreement's diversion to the new company. The court held that the director’s actions were in breach of the Corporations Act and fiduciary duties. Regarding the shareholders and other individuals, the court ruled that they were not liable for the director's actions, as they did not have a direct involvement in the formulation of the breach. The court emphasised the importance of directors and officers adhering to their statutory and fiduciary duties to protect the interests of the company and its shareholders.

The final orders of the court held the director personally liable for the breaches of statutory and fiduciary duties. No orders were made against the shareholders or other individuals involved in the case.