New director plans could backfire

Last month the Federal Government referred a proposal for a radical broadening of the concept of directors duties to its Corporations and Markets Advisory Committee. It is conceivable that the proposal could be embraced, probably for the wrong reasons, by directors and social activists.

The Government has asked the committee (known as CAMAC) to consider the extent to which the duties of directors under the Corporations Act should include corporate social responsibilities or explicit obligations to take account of the interests of classes of stakeholders other than shareholders.

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