Currently, directors and officers are subject to various Federal, State and Territory laws governing directors' liability.
At its meeting on 19 August 2011, the Council of Australian Governments (COAG) agreed to require all jurisdictions to:
- re-audit their existing legislation against the COAG agreed principles; and
- apply the COAG principles to all new legislation where directors' liability provisions apply.
By December 2012, all jurisdictions will be required to develop a legislative plan to implement agreed reforms and introduce legislation to give effect to a consistent national approach on director liabilities.
The aim of this initiative is to adopt a single national approach to director (and other corporate officer) liability laws.