The newly passed Directors’ Liability Reform Amendment Bill 2012 is designed to alleviate unnecessary regulatory burdens on directors.
The Queensland Law Society said today the government’s changes to directors’ liability laws would improve the state’s economic prospects.
President Annette Bradfield said: “The Queensland Law Society has had an ongoing commitment to reform laws that affect directors’ personal liability,” Ms Bradfield said.
“The amended Bill creates an appropriate regulatory regime for directors – one that balances good corporate governance against measures that will foster entrepreneurship and economic growth in Queensland.
“Earlier this year we raised concerns about the lack of consultation on the Bill, and that the law’s provisions reversed the onus of proof and created unnecessarily complex liability provisions.
“Today we’re pleased to say the government responded to concerns raised about the Bill, which resulted in more than 360 changes.
“We are particularly pleased to see our recommendation adopted that Type 2 to 3 provisions be revised down to Type 1.
“In addition, the onus of proof is no longer reversed in nearly all directors’ liability provisions in Queensland.
“The positive outcome achieved here demonstrates the fact that early and continued consultation on draft legislation is key to ensuring good law is made in Queensland.
“What we now hope to see is greater national harmony for directors’ liability provisions as recommended by the Council of Australian Governments.”