Do directors need better statutory protection when acting on the advice of others?
Article
Article Title | Do directors need better statutory protection when acting on the advice of others? |
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ERA Journal ID | 37186 |
Article Category | Article |
Authors | |
Author | Byrne, Mark |
Journal Title | Australian Journal of Corporate Law |
Journal Citation | 21 (3), pp. 238-257 |
Number of Pages | 20 |
Year | 2008 |
Publisher | LexisNexis Butterworths |
Place of Publication | Sydney, Australia |
ISSN | 1037-4124 |
Web Address (URL) | http://www.lexisnexis.com/au/legal/results/docview/docview.do?docLinkInd=true&risb=21_T3639553684&format=GNBFULL&sort=BOOLEAN&startDocNo=1&resultsUrlKey=29_T3639553687&cisb=22_T3639553686&treeMax=true&treeWidth=0&csi=267866&docNo=1 |
Abstract | There is a practical need for company directors to rely on advice and information supplied by others. Theory suggests this is also a most efficient practice that should be encouraged and supported. Failure to do so arguably raises the cost of corporate governance and affects directors' actions because of the risk of personal liability. When the common law caused the process of delegation and reliance to become problematic, amendments were introduced to the Corporations Act to better protect the practice. This article suggests however that these provisions now actually make the directors' position more difficult. Ironically they impose more stringent requirements than would have ever been intended. There are currently proposals to review these provisions and others to provide better protection |
Keywords | company directors; statutory protection; advice |
ANZSRC Field of Research 2020 | 480103. Corporations and associations law |
500102. Business ethics | |
Public Notes | File reproduced in accordance with the copyright policy of the publisher/author. |
Byline Affiliations | School of Law |
https://research.usq.edu.au/item/9yqvw/do-directors-need-better-statutory-protection-when-acting-on-the-advice-of-others
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