Second Tranche of Personal Liability for Corporate Fault Reform Bill 2012 Released for Public Consultation
The Parliamentary Secretary to the Treasurer, the Hon Bernie Ripoll MP, has today released the second tranche of the Commonwealth's Personal Liability for Corporate Fault Reform Bill 2012 for public comment.
Today's release follows circulation of the first tranche of the Bill for exposure on 27 January 2012.
While the first tranche of the Bill considered Treasury-portfolio non-tax legislation, this second tranche covers amendments to remaining Commonwealth non-tax legislation.
"The Government is committed to encouraging wealth and job creation in Australia," Mr Ripoll said.
"It is important that responsible business growth is not stifled by personal criminal liability being imposed on directors in situations where other appropriate protections already exist."
"The Government is also acting to remove personal criminal liability from directors where it breaches principles of good corporate governance and criminal justice."
"At the same time, we are ensuring there are still appropriate protections in place for investors against directors who have encouraged or participated in an offence taking place."
"The Commonwealth has assessed all non-Treasury portfolio legislation against the reform objectives and principles agreed to by COAG, and has identified the proposed changes in the draft Bill."
The reforms released for comment today will remove a significant number of provisions which apply personal criminal liability for corporate fault from Commonwealth legislation.
The final Bill will represent the Commonwealth's implementation of the COAG directors' liability reform project, which was one of 27 reforms under the National Partnership Agreement to Deliver a Seamless National Economy.
The Gillard Government is committed to introducing the final form of the Bill into Parliament before the end of the year.
The second tranche of the Personal Liability for Corporate Fault Reform Bill 2012 can be found on the Treasury website and submissions close on 29 June 2012.
1 June 2012