Government proposal to amend company officer liability legislation

Australian Treasury has released an exposure draft of the Personal Liability for Corporate Fault Reform Bill 2012. It sets out only limited amendments the hoped-for reform of derivative liability across hundreds of pieces of legislation at federal and state level, which is intended to harmonise the imposition of personal criminal liability for corporate wrongs, is still to come. Company secretaries are most set to benefit from the proposed amendments to the Corporations Act 2001, which will limit sanctions to only civil penalties rather than being subject to criminal prosecution. The government proposes to release another draft bill later this month or in March purporting to contain all proposed amendments on directors liability watch this space ... READ MORE

Released by CSA 8 February 2012