Occupational Health and Safety Issues and the Boardroom: Criminal Penalties for Directors for Company's Lack of Safety
Corporate Governance eJournal, 2008
Posted: 27 Jun 2015
Date Written: 2008
The board of directors provides overall strategic direction for the company. Generally directors are not required to become involved in the day-to-day management of corporations. With the recent amendments to occupational health and safety (“OHS”) laws, directors’ duties have been expanded. Directors now have statutory duties to ensure their companies do not breach OHS standards. If their companies fail to discharge their OHS duties, then directors can face fines. If a person is killed because of their company’s safety breach, then directors can face jail sentences up to 20 years. The imposition of these substantial penalties upon directors is aimed at increasing corporate compliance with OHS standards. This article outlines the extent of directors’ liabilities. Whether the policy of holding directors liable for OHS duties results in safer workplaces remains to be seen.
JEL Classification: K00
Suggested Citation: Suggested Citation