Sturt v Bishop of Newcastle
Many readers may be aware of the recent New South Wales Supreme Court decision of Sturt and Anor v the Right Reverend Dr Brian Farran, Bishop of Newcastle and Ors (full decision available here http://www.caselaw.nsw.gov.au/action/PJUDG?jgmtid=158179) which looked at disciplinary action taken against two priests by the Anglican Bishop of Newcastle acting on advice of the internal Professional Standards Board.
The case is important as it confirms a number of previously determined issues relevant to the Church sector, particularly that religious bodies are considered by Courts to be voluntary associations and that Priests and other religious can be viewed as employees at law in certain circumstances. The Court went on to say that the Defendants had acted appropriately in dismissing the Priests by relying upon their internal Professional Standards protocol.
ASIC v James Hardie Industries Ltd Directors
Recently the High Court determined that seven non-executive directors of James Hardie Industries Ltd had breached their duties as a director by approving an ASX press release which they knew, or should have known was incorrect (full decision available here http://www.austlii.edu.au/au/cases/cth/HCA/2012/17.html).
This case builds upon last year's Centro decision which highlighted the fact that directors must be actively involved in the affairs of the company and be asking questions if things don't look right. The Court's stance on this really highlights that it is important to appoint directors with the requisite skills and diligence. People considering incorporating a Not-For-Profit entity should be aware of these requirements before opting to incorporate under the Corporations Act and consider what alternatives there are for incorporation.
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