Company directors say the states are affecting corporate decision-making by not reforming the 708 laws and statutes which impose personal liability on them.

The Australian Institute of Company Directors (AICD) says the burden has become too great, with directors also dealing with such Commonwealth legislation as the Corporations Act, Trade Practices Act and tax laws.

AICD CEO John Colvin says state and territory governments “must do the hard work of reforming liability legislation”, which he says can have an impact on where companies choose to invest.

Some states do not require the onus of proof for cases against directors, and also remove the presumption of innocence and allow them only very narrow legal defences and limited rights of appeal.

“The states are simply failing the reform test, to the detriment of… the whole Australian economy,” Mr Colvin said.

The institute’s “boardroom burden report card” rates the states and territories on the number of laws they have which impose liability on directors, their terms and the procedural fairness with which they are administered.

Only the ACT received a “credit” in the report card, with Tasmania and Victoria getting a “pass” mark.

The AIDC’s total scores measured as a percentage, with 50% regarded as a “pass”, are: ACT 71.92; Tasmania 48.96; Victoria 52.12; NT 43.02; WA 34.08; SA 33.15; NSW 31.08; and Queensland 18.05.