Company director reforms a boost for business

The Newman Government will reduce the legal liabilities imposed on company directors by half and make it easier to resolve commercial disputes as part of its plans to make Queensland a better place to do business.

Speaking at the AICD UQ Business School Leader’s Edge Luncheon, Premier Campbell Newman said the State Government was committed to reducing the red tape burden on businesses and revamping laws that imposed a high level of personal liability on company directors.

“In Queensland alone, there are over 3800 offences for which a director can be held personally liable for acts undertaken by their company with or without their knowledge,” he said.

“There is legislation that effectively reverses the onus of proof and denies company directors the presumption of innocence.

“The reforms we are considering will reduce the liabilities imposed on directors by half and will mean a director will only be personally liable if they encourage or assist in the commission of an offence or they have been negligent regarding its commission.

“We want to send out a signal to the rest of Australia, indeed to the world, that Queensland is open for business.”

Attorney- General Jarrod Bleijie said he would be working to have legislation addressing company directors liabilities introduced before the end of the year.

Mr Bleijie said the Government was also considering laws to make it easier and more cost effective to resolve commercial disputes.

“The proposed model is more user-friendly and allows for disputes to be resolved with the assistance of an impartial arbitrator, leading to fair and final resolutions without unnecessary delay or expense,” he said.

Mr Newman said the Queensland Government wanted business focussing its energies on creating jobs and growth, not drowning in a sea of needless red tape.

“We are taking action to make Queensland a better place to do business – and a fairer place to be a company director,” he said.

[ENDS] 25 September 2012

Media Contact:          Premier’s Office 07 3224 4500

                              Lisa O’Donnell 0400 986 432 (Attorney-General)