Joe O'Toole (Independent)

Senator Cannon has a very strong point on this issue. Maybe there is something in the Bill that we do not understand. It seems, however, that what Senator Cannon feared in respect of the earlier amendment could happen under this provision, that a company could be in default and a director who acted honourably and correctly but was kept in the dark would be guilty of an offence. There seems to be a lack of equity in that, unless some previous Act that we do not understand covers it.

I can see a situation arising in which a company is in default, not because the director failed in his or her duty but because of decisions taken at a remove from the director and the first the director knows about it is that he or she has broken the law. Unless there is some context for this that we do not understand I would be very worried because it is a disincentive to a company director.