Australia is now the second most likely jurisdiction, outside North America, in which a company will face a class action. Is your company at risk?
Directors, corporate officers and professional advisers that work with them need to understand the real and increasing risk of shareholder class actions. Ignorance is no excuse. Indeed it could be a passport to individual financial ruin.
In the aftermath of the HIH Royal Commission, it has been recommended that personal duties and liabilities under the Corporations Act be extended beyond directors and officers to corporate officers, employees and other individuals below board level.
Defence costs in class action suits (for which directors and officers may be liable, regardless of the outcome) can run into millions of dollars.