King & Wood Mallesons

Asia-Pacific 100 position: 3

Director’s liability for corporate fault reform

The Personal Liability for Corporate Fault Reform Act 2012 (Cth) commenced on 11 December 2012. It was intended to implement the Council of Australian Governments’ Director’s Liability reform (COAG reform). The reform initiative is intended to remove regulatory burdens on directors and officers (Ds&Os) that cannot be justified on public policy grounds and to minimise inconsistencies between Australian jurisdictions on the application of personal liability for corporate fault in government laws. Whether the liability act achieves this aim, and its impact on D&O liability insurance, will be considered in this article.

The liability act is mainly concerned with derivative liability, that is where a director or officer is made criminally liable for the acts of the corporation in which they serve. This derivative form of liability arises without the need to establish that these persons either breached the law through their own misconduct or were accessories to the misconduct of their corporations.

The act amends a number of laws including the Corporations Act 2001 (Cth), the Foreign Acquisition and Takeovers Act 1974 (Cth), the Health Insurance Act 1973 (Cth) and the Insurance Contracts Act 1984 (Cth) (ICA)…

If you are registered and logged in to the site, click on the link below to read the rest of the King & Wood Mallesons briefing. If not, please register or sign in with your details below.

Sign in or Register to continue reading this article

Sign in

Register

It's quick, easy and free!

It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.

Register now

Why register to The Lawyer

 

Industry insight

In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.

 

Market intelligence

Identify the major players and business opportunities within a particular region through our series of free, special reports.

 

Email newsletters

Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.

More relevant to you

To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.

Briefings from King & Wood Mallesons

View more briefings from King & Wood Mallesons

Analysis from The Lawyer

View more analysis from The Lawyer

Overview

Level 61, Governor Phillip Tower
1 Farrer Place
Sydney
NSW 2000
Australia
http://www.kwm.com

Jurisdiction: PRC/Australia
No. of offices: 20
No. of qualified lawyers: 1,252