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Opposition welcomes further support for business judgment rule



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MEDIA RELEASE ιο

PETER COSTELLO, M.P. SHADOW ATTORNEY GENERAL AND SHADOW MINISTER FOR JUSTICE

OPPOSITION WELCOMES FURTHER SUPPORT FOR BUSINESS JUDGEMENT RULE.

The Shadow Attorney General, Mr Peter Costello said today that he welcomed the Farrar report on 'Modernizing Australia's Corporations Law' sponsored by the Institute of Company Directors and the Business Council of Australia. The report recommends the Corporate Law Reform Bill be amended to include an Australian version of the business judgement rule.

"This recommendation fully supports the position the Opposition has taken. If the Attorney General is prepared to listen to the submissions he has received the Corporate Law Reform Bill will be re-drafted which will allow it to proceed with a

wide measure of support.

M r Costello said that the Coalition had consistently supported the introduction of a business judgement rule.

Mr Costello said that "the proposal has been exhaustively considered in many forums which have led to the same conclusion - that a business judgement rule should be introduced".

The business judgement rule has been identified and supported by

(i) Companies and Securities Law Review Committee Report No. 10, May 1990;

(ii) Senate Standing Committee on Legal and Constitutional Affairs Report on Company Directors' Duties, November 1989;

(iii) House of Representatives Standing Committee on Legal and Constitutional Affairs Report on Corporate Practices, November 1991.

Mr Costello called on Attorney General Duffy to support the introduction of a business judgement rule now so that it could be adequately drafted in time for inclusion in the Corporate Law Reform Bill, due to be introduced into Parliament later this year.

End Release: 2 August 1992

Contact: Anthony Smith Melbourne 822 4422

or AH (018) 324 009

EM BARGOED UNTIL SUNDAY 2 AUGUST 1992

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