Contact: Tony Stumm, Partner; Carter Newell (Queensland, Australia)
Under the Corporations Act 2001 (Cth) (Act), company directors have a defence to counter claims of negligence against them if they can satisfy the criteria in the ‘business judgment rule’ (subsection 180(2)).
The Australian Institute of Company Directors (AICD) and respected commentator, former NSW Supreme Court Judge, Dr Robert Austin, have been vocal in their calls for legislative reform to reduce liability exposure for directors beyond negligence.
The purpose of this article is to provide an overview of the position, given that the debate on this topic has been dragging for some time. Conversely, shareholder lobby groups have been down playing the need for reform.
To read the full article click here, or visit www.carternewell.com
