• Our Firm
    • Our Team
    • Our Community
    • Our History
  • Our Expertise
    • Property and Conveyancing
    • Family Law
    • Wills & Estate Planning
    • Estate Litigation
    • Commercial Law Services
    • Civil Disputes and Litigation
    • Local Government and Planning Law
    • Personal Injury Lawyers
    • Criminal Law Services
    • Drug Law
    • Employment Law
    • Mediation Services
  • Insights & News
  • Contact Us
02 4341 2355
02 4341 2355
  1. Our Firm
    • Our Team
    • Our Community
    • Our History
  2. Our Expertise
    • Property and Conveyancing
    • Family Law
    • Wills & Estate Planning
    • Estate Litigation
    • Commercial Law Services
    • Civil Disputes and Litigation
    • Local Government and Planning Law
    • Personal Injury Lawyers
    • Criminal Law Services
    • Drug Law
    • Employment Law
    • Mediation Services
  3. Insights & News
  4. Contact Us

Contact Us

HomeLegal InsightThe Responsibility of being a Director
29 May 2019

The Responsibility of being a Director

HomeLegal InsightThe Responsibility of being a Director
29 May 2019

Being a director of a company – no matter what size – is a huge responsibility.
And in a system becoming more and more focused on corporate compliance, it’s a potentially costly title for those who don’t keep their eye on the ball.
Just ask Kia Silverbrook and Janette Lee.
The couple held the position of director of a number of companies in the science and engineering sector, which allegedly failed to pay workers a range of entitlements.
Widespread complaints from employees about unpaid wages and superannuation began several years ago.
But the Federal Court only considered the question of whether Mr Silverbrook and Ms Lee should be held personally liable as accessories to what effectively amounted to a series of breaches by the management below them.
The Court’s decision sent shockwaves through corporate Australia, with the pair each ordered to pay $1.1 million.
The key question was whether the pair were “involved” in the broken system that led to so many transgressions.
While it was true Mr Silverbrook and Ms Lee engaged others (management) to perform day-to-day duties, including accurate payment of employee wages and entitlements, the Court found they were “involved” in a number of ways, including:

  • As directors, they were the controlling force of the companies.
  • They resisted the option to end the employment of any workers, while still running the companies and attempting to raise funding.
  • They were aware for at least a 10-month period that a number of employees weren’t being paid as they previously were.
  • They had by-passed management on numerous occasions to engage in direct contact with employees.

The area of award payments is one of the most fluid and complex in all of Australian law. It’s a challenge for specialist management departments, such as payroll and Human Resources, to follow, let alone non-executive directors sitting above the operational entity.
But as this recent case demonstrates, the personal punishment for failing to keep apace of what’s happening below can be crippling. As far as Mr Silverbrook was concerned, the Court also found he was “willfully blind” to the details of minimum wages and entitlements.
In most cases, directors rely on management and third parties to ensure their company is operating legally. But in the end, the buck stops with them. Particularly when they are hands-on and have prior knowledge of potential breaches.
Our corporate and workplace law experts have a keen eye for these details and risks. Don’t hesitate to contact one of our helpful staff to make sure your company is completely compliant.

Tonkin Drysdale Partners
Central Coast Lawyers for Over 60 Years
Share on X (Twitter) Share on Facebook Share on Pinterest Share on LinkedIn Share on Email

Post navigation

Domestic Violence and the Workplace
Class Action Against AMP
02 4341 2355

Contact Us

Subscribe to our newsletter for all the latest legal news and firm updates.

Get in Touch
Email
info@tdplegal.com.au
Phone
02 4341 2355
Visit
79 Blackwall Road Woy Woy NSW 2256

Quick Links

  • Our Firm
  • Our Expertise
  • News & Insights
  • Contact Us
Estate Litigation Appointment

Family Law Professionals TDP legal

Estate Litigation Case Call & Consultation

Complimentary 15-Minute Discovery Call with TDP Lawyers

 

Get started with a free 15-minute phone consultation. Connect with one of our experienced Estate Litigation lawyers to discuss your situation and explore how we can assist you. This brief call is an opportunity for us to understand your needs and for you to determine the next steps. We’ll reach out to you, and you can then decide if you’d like to book a longer consultation or take immediate action.

 

BOOK NOW


Initial Consultation with TDP Lawyers – in person or video

Duration: Up to 1.5hrs Fee: $350 + GST

During our first consultation, we’ll focus on your specific concerns and priorities. Your estate litigation will provide a clear explanation of the potential outcomes, and offer tailored advice to address your current situation. We will also discuss practical recommendations and outline the next steps for moving forward with your case. Available in person or via a video meeting.

CALL NOW

Appointment

Family Law Professionals TDP legal

Family Law Case Call & Consultation

Complimentary 15-Minute Discovery Call with TDP Lawyers

Get started with a free 15-minute phone consultation. Connect with one of our experienced family lawyers to discuss your situation and explore how we can assist you. This brief call is an opportunity for us to understand your needs and for you to determine the next steps. We’ll reach out to you, and you can then decide if you’d like to book a longer consultation or take immediate action.

Please note: We do not accept requests for legal aid at this time.

BOOK NOW


Initial Consultation with TDP Lawyers – in person or video

Duration: Up to 1.5hrs Fee: $350 + GST

During our first consultation, we’ll focus on your specific concerns and priorities. Your family lawyer will provide a clear explanation of the family law system, including potential outcomes, and offer tailored advice to address your current situation. We will also discuss practical recommendations and outline the next steps for moving forward with your case. Available in person or via a video meeting.

CALL NOW

© 2025 Tonkin Drysdale PartnersAll Rights ReservedLiability limited by a scheme approved under Professional Standards LegislationTDP Legal Privacy Policy