Have your say: Corporate Fault Reform Bill

| February 21, 2012

 

You are invited to have your say on the Personal Liability for Corporate Fault Reform Bill 2012, which forms part of the National Partnership Agreement to deliver a Seamless National Economy.

Submissions close: 30 March 2012.


On 29 November 2009 the Council of Australian Governments (COAG) agreed to progress the reforms contained in the National Partnership Agreement to deliver a Seamless National Economy (SNENP). One of the 27 deregulation priorities is the directors’ liability reform project.

The project aims to harmonise the imposition of personal criminal liability for corporate fault across Australian jurisdictions.  This project came about because of growing concern over a trend in regulatory legislation across Australia to hold company officers criminally liable when their company breaches a statutory requirement (derivative liability).

On 27 January 2012, The Hon David Bradbury MP, Parliamentary Secretary to the Treasurer announced the release of an exposure draft of the Personal Liability for Corporate Fault Reform Bill 2012, which constitutes the first tranche of proposed amendments to Commonwealth directors’ liability legislation. This Bill covers Treasury (non-taxation) legislation. As such, it makes amendments to the Corporations Act 2001, Insurance Contracts Act 1984, Foreign Acquisitions and Takeovers Act 1975 and the Pooled Development Finds Act 1992.

Further information in regard to the consultation is available here.

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