Changes to directors’ liability in Queensland

Introduction

On 16 October 2013 the Directors' Liability Reform Amendment Act 2012 was passed in the Queensland Parliament with most provisions to commence on 1 November 2013.¹ The Act reduces the number of provisions imposing responsibility on executive officers for corporate fault. It also recasts the standard of executive liability with respect to a broad range of offence provisions.

The Act responds to the Council of Australian Governments ('COAG') agreement to Principles and Guidelines² to promote consistency across all Australian jurisdictions in the imposition of personal liability on directors. Prior to the introduction of the Bill into Parliament, the Queensland Government undertook a legislative audit which identified over 3,800 executive officer liability offence provisions in over 80 Acts.