The Federal Government has asked the Corporations and Markets Advisory Committee to identify any inconsistencies and compliance cost overlaps in existing laws relating to directors' liability.
The Parliamentary Secretary to the Treasurer, Senator Ian Campbell, said today the committee would investigate the personal liability of directors at common law and under Federal and State/Territory statutes.
"The business judgement rule which came into effect two years ago as a result of the CLERP 3 reforms addressed directors' duty of care and diligence, however directors are also subject to a range of other duties and requirements by the Commonwealth, States and Territories," Senator Campbell said.
"Concerns have been raised that overlapping and inconsistent duties and potential liabilities are generating unnecessary compliance burdens and causing difficulties in obtaining insurance cover.
"The purpose of this examination is to identify the full range of impacts of existing laws with a view to rationalising the various requirements and duties."
He said the committee would also consider whether potential personal liability under the various requirements were disincentives to anyone considering board positions.
The committee is expected to start its investigation soon.
PERTH
11 September 2002
Contact: Wayne Grant (08) 9421 1755 or 0407 845280