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Why Australia needs a new accord on directors' duties

What do you think?

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Peter Kronborg @ 2020.06.09 10:13 AM
Yes, and it's more than a safe harbour mentality. It's the right to try and fail. At least keep reaching out and trying, not avoiding risk at all costs.

Glenn Barnes @ 2020.06.09 10:45 AM
Yes, Peter. We need to re-kindle the entrepreneurial spirit with people being encouraged to take on reasonable business risk. 

Lynn Wood @ 2020.06.09 4:46 PM
People get concerned with this change that directors won't take proper responsibility for their decisions. There was a case that's been used to show directors did the right thing by evidencing relevant questions they had asked in the minutes. Do you remember such a case? I like the expression "the minutes are a letter to an unknown judge".

Glenn Barnes @ 2020.06.11 7:26 AM

It would be a concern if a board of directors spent a lot of time worrying about prosecution - and thinking about how an unknown judge might think. Better to spend time thinking about how to best serve all the stakeholders of the enterprise in an appropriate fashion - and within the spirit of laws and regulations.

I do not recognise/remember the case you mention. The AICD publication Company Director has good sections on legal and regulatory matters and does feature articles on interesting cases. If you have not done so I suggest you read these - including back copies. (There are some really useful and interesting articles by the late Bob Baxt.)

Lynn Wood @ 2020.06.12 10:18 AM
Just remembered the case is AWA- I agree that the minutes should not be the focus. They shouldn't be taken for granted either.

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By Glenn Barnes

3 June 2020

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