Law Report Law Report Special: Star Casino executive directors breached their obligations under the Corporations Act
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Mar 5, 2026 Anthony Whealy, former NSW Court of Appeal judge and anti‑corruption commissioner, offers a concise legal perspective. He unpacks the Federal Court decision on Star Entertainment executives and why two senior figures were found to have breached duties. He discusses the limits of the ruling for non‑executive directors, board information flow, AI and board packs, and likely civil penalties to follow.
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Narrow Win For NonExecutive Directors
- Justice Lee found the case against non-executive directors failed on the specific evidence ASIC led.
- The decision rested on the legal distinction between executive and non-executive roles and the material actually before the court.
Executives Held To Coalface Standard
- Matthias Bekier and Paula Martin were found to have breached s180 because they had frontline information that was not adequately escalated.
- Justice Lee criticised their credibility and noted they failed to present information so the board could appreciate the need for further inquiry.
Avoid Hindsight When Judging Directors
- Justice Lee warned against hindsight bias and assessed directors by how they handled information in the moment.
- He emphasised the need to evaluate contemporaneous decision‑making speed and context rather than later criticism.