Law change gives boards a new claim
Legislation has been passed in Queensland to remove the personal liability of executives in certain situations.
Under the modified rules, corporate executives will not be held personally liable for some offenses committed by their companies. The move is one of many in the state designed to cut the 'red tape' that the government believes is strangling productivity in many sectors.
Attorney-General Jarrod Bleijie says that previously, some executives had been held unfairly liable for the actions of their companies.
He claims accountability measures will be maintained, but the amendments do provide some new avenues for executive officers to get off the hook when their corporation commits an offense.
The newly-amended director's liabilities says that when a corporation commits a crime, if an executive officer can prove that they did not know, or knew and took measures to prevent it, the executive will not also be held liable.
The bill adds to the executive liability amendments to dozens of existing Acts. Full details of the changes are available here.
Mr Bleijie says it is about making things easier for the business community in Queensland.
“This is about red tape reduction for businesses in Queensland, growing the four pillars of the economy,” he said.
“We've reduced directors' liabilities in this bill from 3,800 directors' liabilities to 100 and I think that's a great result.”