Director claims – Routes to Recovery: An analysis of “alter ego” claims and fiduciary duties post termination of directorship
10/12/2025
Guest Contributors
Ian Thomas RITP, Barrister at Bar Chambers
A presentation by Ian Thomas RITP, Barrister at Bar Chambers at the 2025 SA/NT Division Conference emphasised that insolvency practitioners should look beyond formal appointments of directors or officers to maximize prospects of recovery. Strategies include targeting shadow directors/officers and establishing that statutory (s 183) and fiduciary duties can survive resignation, particularly regarding corporate opportunities. Crucially, IPs can leverage the powerful alter ego doctrine to hold related third-party companies liable by treating them as identical to the director, bypassing complexities of knowing assistance claims for faster asset recovery.
For insolvency practitioners, the process of assessing claims against directors often begins with a routine ASIC search. However, relying solely on appointed directors and officers, risks overlooking significant routes to recovery. Maximising asset pools requires looking outside of the box to identify shadow directors, non-appointed officers, former directors and officers who exploit corporate opportunities, and related entities that may be held liable under the emerging "alter ego" doctrine.
This article explores recent analysis of current recovery strategies and focuses on expanding the traditional scope of potential defendants and third-party liability claims against related entities.
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