Directors\u27 Liability for Corporate Faults and Defaults—An International Comparison

Australia’s new Rudd Government has indicated to business leaders that it intends to review various aspects of corporate law, including the imposition of personal liability on directors for corporate fault. Their concern is that the present corporate law regime is causing directors to be overly cautious in making decisions, to the detriment of the efficient operation of companies and the well-being of our economy. At the same time, the government acknowledges the importance of imposing appropriate sanctions where a company or its officers fail to meet required standards. These are universal concerns. To inform this debate, this article will look at the way in which key aspects of corporate law are dealt with internationally, and outline some reasons for convergence and divergence