Queensland Government Propose Changes to Directors’ Liability Laws

The number of provisions in Queensland imposing personal and criminal liability on executive officers for corporate fault will be reduced under the recently introduced Directors’ Liability Reform Amendment Bill 2012 (Qld).

The Bill also aims to reduce red tape and regulatory obligations for businesses in Queensland and achieve greater consistency of approach with other Australian jurisdictions regarding the liability of executive officers of corporations.

The proposed changes are in response to concerns expressed by the business community and legal profession about the number and complexity of provisions which impose personal liability on executive officers for corporate criminal fault. Business groups have suggested that laws of this nature adversely affect entrepreneurialism and economic growth because directors are obliged to adopt an excessively cautious approach, thus decreasing competitiveness, innovation and profitability.

The amendments have been developed for consistency with national Principles and Guidelines. To encourage consistency, the Council of Australian Governments (COAG) agreed that jurisdictions would audit their legislation with regard to the same Principles and Guidelines.

As directed by Standing Order 131 of the Standing Rules and Orders of the Legislative Assembly, the Bill has been referred to the Legal Affairs and Community Safety Committee for in depth consideration. The Committee has asked for written submissions and is required to report to the Parliament by 15 March 2013.

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