Director Liability: Comparative assessment of Australia and international peers

Australian directors operate in one of the most complex liability environments among the six jurisdictions assessed. Since 2019, new areas of exposure have been introduced including cyber security, financial accountability and mandatory climate reporting, adding significantly to directors’ responsibilities. 

To undertake the study, Allens examined criminal and civil frameworks for imposing liability on directors across ten areas of law – including corporate, competition, tax, environmental and workplace regulation – and extended the analysis to contemporary governance issues.

Comparative findings at a glance: 

• High-water mark: Taken together, Australia has the most wide-ranging liability settings across the six jurisdictions. 
• Stands alone: Australia imposes higher liability in areas such as corporate, tax
  and environmental law. 
• Equal highest: In areas including cyber security, consumer protection and financial accountability.

The updated Allens memorandum sets out this legal analysis in detail. The AICD’s State of Play summary complements the memorandum by providing: 

• The AICD’s perspective on accountability and the case for proportionate
  regulatory reform. 
• Key messages for policymakers and directors, highlighting the implications of the findings. 

Together, these documents give directors and stakeholders a comprehensive picture of director liability in Australia, how it compares internationally, and where change is needed.