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RISKY BUSINESS When it comes to naming his clients' number one concern, Humphrey says
"thanks to a number of
landmark cases—James Hardie, Centro and Fortescue Metals—most preoccupations drill down into the duties of directors and the personal liability they hold to continuously disclose information to the ASX".
FURTHER, WITH THE INTRODUCTION OF THE WORK HEALTH AND SAFETY ACT 2011 ON 1 JANUARY, DIRECTORS CAN BE FINED UP TO $600,000 AND FACE A JAI L TERM OF UP TO FIVE YEARS FOR WORKPLACE SAFETY BREACHES. THE RESPONSIBI L IT IES PLACED UPON DIRECTORS ARE GREAT, BUT A RESPONSIBLY RUN BUSINESS SHOULD ALREADY HAVE THESE MATTERS WEL L UNDER CONTROL.
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Australian companies are widely adopting cloud technology as a cost-effective data storage solution. But organisations need to keep track of where they are hosting their information. If sensitive or private business documents are held on US soil, they are subject to local federal laws that could compromise data security and leave businesses exposed to litigation in Australia for breach of privacy. Under new UK anti-bribery legislation introduced
in July 2011, companies throughout the world can be prosecuted for failing to prevent bribery. An Australian company trading in the UK that pays a bribe through an agent, employee, subsidiary or any third party can be held liable, brought to trial and penalised in the UK.
The silver lining Apart from keeping their noses clean at home and abroad, what else can Australian businesses do to secure their future when compliance requirements are in a constant state of flux? Humphrey advises boards to "make sure they're operating with a really strong corporate governance framework and make compliance part of the daily running of a business". Humphrey also recommends companies cast
the net wider when they're looking for new board members. "Companies are going to need a greater diversity of people to get the portfolio of skills and experience they need to achieve this range of compliance targets. Compliance legislation is going to be about more than prohibiting certain business practices, it's about businesses actively achieving social and environmental policy objectives." Companies that are getting it right will be reaping the rewards of some great PR stories.
RESOURCES
ASX Compliance www.asxgroup. com.au/asx- compliance.htm
ASIC www.asic.gov.au
Copyright Council www.copyright. org.au
Financial Services Council www.fsc.org.au
IP Australia www.ipaustralia. gov.au
