The Miscellaneous Acts Amendments (Directors’ Liability) Act 2012 (NSW) commenced on 11 January 2013. It introduced new personal liability for directors and managers in relation to a variety of corporate offences.
There are three categories of offences attracting personal liability for directors and managers:
1. Special executive liability offences (serious corporate offences);
2. Executive liability offences (minor corporate offences); and
3. Accessory offences (knowingly being concerned in or a party to a corporate
Accessory offences are a new type of offence where a director or manager is found to aid, induce, conspire or in any other way knowingly be concerned in or be a party to the commission of a corporate offence.
In order to avoid liability, directors and managers should ensure that their corporation carries out regular professional assessments of compliance with the law and any applicable regulations. This includes proactive activities to ensure the corporation’s employees, agents and contractors are provided with information, training, instruction and supervision. It also includes creating and maintaining a corporate culture that does not direct, encourage, tolerate or lead to non-compliance with the law.
There is a long list of Acts which include corporate offences in the above three categories. It is important that directors and managers understand their responsibilities and comply with all necessary legal requirements.
Don’t wait until it’s too late, call today for more information. The commercial lawyers at Matthews Folbigg Parramatta can provide you with legal advice and information on all aspects of business and commercial law.
Phillip Brophy – firstname.lastname@example.org or 9635 7966