In 2006 the High Court of Australia decided that two company employees were personally liable, along with their corporate employer, to pay compensation to customers of the company who had incurred losses as a result of relying on inaccurate information supplied to them by the two employees. According to the High Court, it did not matter whether the employees knew the information they supplied was inaccurate. Neither did it matter that they were merely carrying out their roles as employees of the company. The justification for Court’s decision was that there was no reason to distinguish between the position of the company’s employees and that of its directors, who had been found, in several previous decisions, to be personally liable for supplying misleading information while carrying out their role as directors. The focus of this article is on the circumstances in which company employees in Australia can be held personally liable for supplying inaccurate information in the course of their employment.
|Keywords:||Employees, Liability, Misleading Information|
Senior Lecturer in Commercial Law, School of Business, University of Adelaide, Adelaide, South Australia, Australia
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