Director Responsibilities in Court Proceedings
Litigation: 17 September 2025
Author: Aaron Stewart - Our People
Simpson v Taylors Business Pty Ltd [2025] FCA 835
Introduction
Directors are often at the forefront of managing a company’s response to disputes. However, the Federal Court has made it clear in Simpson v Taylors Business Pty Ltd [2025] FCA 835 that directors cannot simply take on the role of a lawyer and represent their company in Federal Court proceedings.
This case is a timely reminder to directors of their responsibilities when litigation arises and the importance of ensuring proper legal representation.
Background
Taylors Business Pty Ltd, a pawnbroking company, was defending serious allegations in the Federal Court, including unconscionable conduct, unfair contract terms and unlicensed credit activity.
After its solicitors ceased acting, the sole director, Mr Graeme Grainger, sought permission to represent the company himself, arguing that the company could not afford legal representation.
The Court’s View
The Federal Court refused the application, confirming that companies must generally be legally represented. Justice Bennett pointed to several key reasons:
• Financial hardship was insufficient – the evidence did not establish that the company could not afford lawyers, particularly where a freezing order allowed funds for legal fees.
• History of non-compliance – repeated failures to follow court orders had already delayed proceedings.
• Lack of legal expertise – the director had misinterpreted orders and shown limited understanding of the legal issues.
• Fairness and integrity risks – allowing the director to act personally could undermine the proper conduct of the case.
Lessons for Directors
This case highlights important lessons for directors:
• Companies must almost always be represented by a lawyer in the Federal Court.
• Financial difficulties are not, by themselves, a sufficient reason to dispense with this requirement.
• Directors are expected to ensure the company complies with court orders and timetables.
• Attempting to represent the company without legal expertise risks worsening the company’s position.
How Aitken Partners Can Assist Directors
At Aitken Partners, we regularly work with directors to navigate litigation and regulatory disputes. We understand the unique pressures directors face when balancing commercial realities with strict legal obligations.
Our team can assist by:
• Ensuring your company remains compliant with court rules and orders.
• Developing litigation strategies that allow directors to make informed, commercial decisions.
• Acting quickly where a company’s representation is at risk, including urgent court appearances.
• Providing directors with confidence that their company’s position is advanced effectively and professionally.
Conclusion
The decision in Simpson v Taylors Business Pty Ltd underscores a simple but important principle: directors cannot step into the role of legal advocate for their company in the Federal Court. Proper representation is essential to protect the interests of both the company and its directors.
If you are a director facing litigation or potential regulatory proceedings, our Brisbane team at Aitken Partners can guide you through the process and ensure your company’s interests are safeguarded.