Integrated reporting and directors’ concerns about personal liability exposure: Law reform options

Huggins, Anna, Simnett, Roger, & Hargovan, Anil (2015) Integrated reporting and directors’ concerns about personal liability exposure: Law reform options. Company and Securities Law Journal, 33, pp. 176-195.

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Integrated reporting (<IR>) holds significant promise as a new reporting paradigm that is holistic, strategic, responsive, material, and relevant across multiple time frames. However, its uptake in Australia is being hampered by directors’ concerns about personal liability exposure, particularly for forward-looking statements that subsequently prove to be unfounded. This article
seeks to illuminate the bases for these liability concerns by outlining the similarities between <IR> and the operating and financial review requirements under the Corporations Act 2001 (Cth), and the relevant grounds for liability for misleading and deceptive disclosures, and breach of directors’ duties. In light of this discussion, this article proposes four possible reform options, ranging from minor adaptations to the <IR> Framework to far-reaching reforms of the Corporations Act. As assurance is desirable to ensure that reliance can be placed on integrated reports, the development of a legal safe harbour for auditors of forward-looking information is also canvassed.

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ID Code: 85016
Item Type: Journal Article
Refereed: Yes
Keywords: Integrated reporting, Directors' liability, Assurance, Reform
ISSN: 0729-2775
Divisions: Current > QUT Faculties and Divisions > Faculty of Law
Deposited On: 28 Jun 2015 23:48
Last Modified: 02 Jul 2015 15:34

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