From www.aicd.com.au: A recent Federal Court case involving the Pacific Current Group highlighted the successful application of the business judgment rule as a defense against allegations of breach of directors’ duties during a merger.

While the court dismissed claims against four non-executive directors, it found the CEO, Andrew McGill, liable for not adequately informing the board about risks related to the merger, specifically concerning Northern Lights Capital Partners.

The case indicates that the scope of directors’ duties varies based on their roles and experiences, and that reliance on others is permissible depending on the context of the decision-making.