Directors Duties in Australia

The Australian corporate governance landscape is changing. Gradually, there has been a shift towards imposing greater personal liability on directors. Whilst the law still accepts error of judgment involving commercial risk, the standard expected of directors is high. Recent caselaw demonstrates Australia’s corporate regulatory authority is increasingly willing to pursue directors for civil and criminal penalties. The laws of directorship demand directors take an active role in the governance of the company. The duties imposed on directors reflect this. Broadly speaking, most duties imposed on directors are negative, meaning directors are prohibited from doing something. However, some impose a positive obligation, meaning directors must actively do something