ASIC's Longo: Star Ruling Strengthens Board Oversight

0:00You're listening to Sydney News Today, powered by the Daily News Now. ASIC's outgoing chair, Joe Longo, says a recent federal court loss won't weaken oversight of company boards. The court cleared star entertainment's directors of blame for major governance failures that pushed the casino firm toward collapse. Even so, Longo insists the ruling actually sharpens what directors must do. Last week, Justice Michael Lee ruled that former star chief executive Matt Beckier breached his duties. The three senior executives were also found guilty. But the board escaped liability, despite a deeply flawed company culture involving lies to bankers and shady junket practices. In a speech to the Australian Institute of Company Directors, Longo called the judgment a forward step. He said it will guide directors, managers, and advisors for years. The regulator plans to appeal or not, but his drive to tackle bad governance remains strong. Directors note the decision draws a clear line between management slipups and board oversight.

1:03Directors art on the hook for every compliance issue, but they must dig into key info from executives. One governance specialist worries it might limit board's duty to probe deeper. Stars still face as fines in the hundreds of millions for money laundering breaches. This could tip the company over the edge, even after a recent bailout. Meanwhile, it's set to lose control of its new Brisbane casino complex due to cash woes. And Dean and his brought to you by our sponsor link in the description. Headphones in a pillow, simple idea, surprisingly addictive, S-O-L-I-S-O-L-Pillow.com