The recent Federal Court decision in ASIC v Bekier (Liability Judgment) [2026] is a timely reminder of the high standards expected of company directors and officers.

The case arose from governance failures at The Star Entertainment Group (“The Star”). The Australian Securities and Investments Commission (ASIC) alleged that former CEO and Managing Director Matthias Bekier had failed to exercise reasonable care and diligence in managing significant anti-money laundering (AML) and criminal infiltration risks.

These included The Star’s continued dealings with the Suncity gambling junket, a Macau-based VIP gaming operation that brought wealthy mainland Chinese gamblers to casinos worldwide, despite concerns about organised crime links, deficiencies in The Star’s AML/CTF framework, and the misuse of China UnionPay cards by casino patrons.

A central issue in the case was whether Mr Bekier had properly identified, managed and, crucially, escalated these risks to The Star’s Board as required under s.180(1) of the Corporations Act 2001 (Cth). The Court found that he had breached his duty of care and diligence.

Directors and officers are subject to a number of statutory obligations under the Corporations Act including, but not limited to:

  • Exercising care and diligence;
  • Acting in good faith and for a proper purpose;
  • Not improperly using their positions; and
  • Not improperly using information obtained through their positions.

One of the key lessons from the Bekier matter is the importance of “information screening” between executive management and the Board to which it reports. While directors are not expected to know every operational detail, they are entitled to receive a complete and accurate picture of the company’s material risks. Senior executives should not filter, minimise or withhold information that could materially affect a Board’s understanding of those risks.

The decision also reinforces the point that directors cannot simply accept information at face value. They must critically assess the information presented, ask probing questions, and ensure appropriate action is taken.

If you would like advice on directors’ duties, corporate governance, or on establishing effective reporting and governance protocols, the team at Rankin Business Lawyers would be pleased to assist.

Ming Yip
Lawyer