NCJ Number
137317
Journal
Trends and Issues in Crime and Criminal Justice Issue: 34 Dated: (March 1992) complete issue
Date Published
1992
Length
6 pages
Annotation
This paper explains entrepreneurial crime in Australia and discusses current proposals for changes to the Corporations Law that are designed to prevent irresponsible conduct by directors without constraining the entrepreneurial spirit that is essential to Australia's economic viability.
Abstract
"Entrepreneurial" crime as a concept refers to punishable acts that are committed by individuals in controlling positions within corporations, using the resources and power derived from the corporate form as a vehicle to achieve ends which benefit the entrepreneur personally. The precise cost of entrepreneurial crime in Australia over the last decade is incalculable. Factors that contribute to the commission of entrepreneurial crime range from the psychological characteristics of individuals who operate in a corporate culture that values risk-taking to factors at the macro-economic level that may provide opportunities for such individuals. The detection of entrepreneurial crime is often obstructed by the complexity of corporate structures. The general thrust of both legislative and self-regulatory initiatives in Australia has been to improve the quality of corporate governance. Proposed legislative changes in the Corporations Law, which became operational on January 1, 1991, offer hope that future corporate governance in listed companies will be based on principles that clearly specify the fiduciary responsibilities of directors. The quality of information to shareholders and directors should improve, thus enhancing decisionmaking at both levels. The effectiveness of the proposed changes should be monitored and assessed. 22 references