Director liability a continuing focus for AICD policy team

Mr Robert Elliott FAICD, discusses the issue of director liability and the AICD’s proposed Honest and Reasonable Director Defence.

GOVERNANCE LEADERSHIP CENTRE: INTERVIEW WITH ROBERT ELLIOTT FAICD, GENERAL MANAGER POLICY & ADVOCACY, AICD – DIRECTOR LIABILITY AND THE PROPOSED HONEST AND REASONABLE DIRECTOR DEFENCE

AUSTRALIAN INSTITUTE OF COMPANY DIRECTORS (VIDEO), MARCH 2014

In this video, the AICD’s General Manager Policy & Advocacy, Mr Robert Elliott FAICD, discusses the issue of director liability and the AICD’s proposed Honest and Reasonable Director Defence. Mr Elliott notes that the proposed defence is not just for the benefit of directors, but, importantly, removes a blockage that directors and boards have in giving investors the forward-looking information that they want. The market wants to know “what directors really think is going to be happening” with their companies. Currently, directors are often unwilling to provide this information due to the risk of personal liability.

The Honest and Reasonable Director Defence is outlined in more detail in a proposal for reform and frequently asked questions about the proposal.