Australian overregulation? - effect on directors' liability

Australia has come a long way over the last 20 years in terms of regulatory reform and in particular corporate law regulation. However, with the current credit crisis and economic recession, there are questions that have to be asked as to whether we have got the extent of regulation right. The current economic environment naturally places all directors under greater pressure for accountability. The complexity of directors’ duties and the lack of consistent defences mean that insolvent litigation may continue for the next five years. This does not encourage future investment by either international or domestic funds. The OECD Report indicated that Australia has fallen behind 30 other countries due to our overregulation of corporations laws. It is time for a major overhaul of the state or territory and federal regulation which overlap.