It is not only directors and officers who can be exposed to
personal liability in carrying out their duties. Executives and
other employees, particularly in heavily regulated industries, also
need to be aware of relevant civil and criminal liabilities.
Businesses and individuals must remember to look beyond the
Corporations Act when considering potential areas of liability and
measures to mitigate liability risks.
In what circumstances can personal liability
arise?
The personal liability that may attach to the conduct of a
director, officer, executive or other employee is not limited to
the well recognised directors' duties that are found in the
Corporations Act 2001 (Cth).
Consideration must also be given to industry-specific
requirements which may impose personal liability, either under the
general law or under particular legislation or regulation. For
example:
