Personal Liability for Corporate Fault Reform Bill 2012 awaits assent

The Personal Liability for Corporate Fault Reform Bill 2012 has passed its passed its parliamentary stages and is awaiting royal assent. The Bill implements the Council of Australian Governments’ (COAG) Directors’ Liability reforms which aim to “harmonise” (make uniform) the imposition of personal criminal liability for corporate fault across the Australian jurisdictions.

The amendments proposed by the Bill apply according to the federal government principles agreed as part of the COAG Directors’ Liability reform to Commonwealth legislation across various portfolios, including the:

• Corporations Act 2001,

• Corporations (Aboriginal and Torres Strait Islander) Act 2006,

• Insurance Contracts Act 1984,

• Foreign Acquisitions and Takeovers Act 1975,

• Income Tax Assessment Act 1936,

• Taxation Administration Act 1953,

• Superannuation Guarantee (Administration) Act 1992,

• Pooled Development Funds Act 1992,

• Therapeutic Goods Act 1989,

• Health Insurance Act 1973,

• Veterans’ Entitlements Act 1986,

• Classification (Publications, Films and Computer Games) Act 1995,

• National Measurement Act 1960, and

• National Vocational Education and Training Regulator Act 2001.

The Bill amends the above Acts to:

• remove personal criminal liability for corporate fault where such liability is not justified;

• remove the burden of proof on defendants to establish a defence to a charge;

• replace personal criminal liability for corporate fault with civil liability where a non-criminal penalty is appropriate; and

• where personal criminal liability is justified, to make clear the circumstances where such liability would apply.

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