Know what is at stake: the importance of the safety regulatory interface for the personal liability of executives

2013 ◽  
Vol 53 (2) ◽  
pp. 442
Author(s):  
Harold Downes ◽  
Fiona Austin
Keyword(s):  
Agricultural Land ◽  
Petroleum Industry ◽  
Health And Safety ◽  
Regulatory Regime ◽  
Personal Consequences ◽  
Complicating Factors ◽  
Exploration Drilling ◽  
Directors And Officers ◽  
A Company ◽  
Personal Liability

The operations of a company involved in the Australian petroleum industry are subject to a range of health and safety regulatory regimes. Knowing what regulatory regime applies to each of the company’s operations is not only important to ensure the company’s compliance but also to determine the due diligence priorities and exposures of its executives. Different regulatory schemes can apply to a company’s exploration, drilling, construction, accommodation, transport, and administrative operations conducted onshore and offshore and in multiple jurisdictions. Additional complicating factors also exist when the operations overlap with other industries, for example when pipelines cross mining leases or agricultural land. Understanding the regulatory interface is crucial for corporate compliance, but is also necessary to help company officers and executives understand their personal liability for the company’s operations. Executive liability is intended to influence company decisions because of potential personal consequences for decision makers. Depending on the particular safety regime the company’s operations fall in at a particular time, executives could be at risk of five years of imprisonment. There are also limits on the financial support the company can provide, whether directly or through directors’ and officers’ liability insurance. The key action for companies is to be proactive in determining what regime applies and assessing what steps their executives need to take to comply with their duties to avoid penalties. This extended abstract provides a model for the development and discharge of effective governance frameworks in the complex petroleum industry.

SFC reminding sponsors of the need to adopt an attitude of “professional scepticism”

2017 ◽  
Vol 18 (3) ◽  
pp. 82-84
Author(s):  
Gareth Hughes ◽  
James Comber
Keyword(s):  
Hong Kong ◽  
Design Methodology ◽  
Regulatory Regime ◽  
Group Company ◽  
Content Type ◽  
Professional Skepticism ◽  
Company Limited ◽  
A Company ◽  
Practical Implications ◽  
Do So

Purpose To remind sponsors to adopt an attitude of “professional skepticism” in Hong Kong IPOs. Design/methodology/approach Explains the Securities and Futures Commission (“SFC”)'s sanction on BOCOM International (Asia) Limited (“BIAL”) as a sign of determination to hold sponsors to account as gatekeepers to the Hong Kong capital markets. Findings The SFC has reprimanded and fined BIAL HK$15 million for failing to discharge its duties as a sole sponsor in a listing application for China Huinong Capital Group Company Limited (“China Huinong”), a company established in the PRC. This substantial fine reinforces the need for sponsors to ensure that they fully and properly discharge all of their duties, and that they will be held responsible for any failure to do so, even if the listing is not ultimately approved. Practical implications If sponsors fail to fulfil the requirements required under the sponsors’ regulatory regime, the SFC will be proactive and impose tough sanctions, even if the listing application is eventually withdrawn or returned by the SEHK. Originality/value Practical guidance from experienced regulatory, financial and commercial dispute resolution lawyers.

Initiatives in UK Offshore Decommissioning Following the Wood Review: Applicability for Decommissioning in Norway

2021 ◽  
Author(s):  
Rune Vikane ◽  
Jon Tømmerås Selvik ◽  
Eirik Bjorheim Abrahamsen
Keyword(s):  
Swot Analysis ◽  
Oil And Gas ◽  
Petroleum Industry ◽  
Lessons Learned ◽  
Regulatory Regime ◽  
Regulatory Body ◽  
Cost Estimates ◽  
Substantial Impact ◽  
Gas Recovery ◽  
The Uk

Abstract The 2014 Wood Review is a report reviewing UK offshore oil and gas recovery and its regulation, led by Sir Ian Wood. The report identifies and addresses key challenges in the UK petroleum industry, among them the lack of a strong regulatory body and a decommissioning strategy. The UK petroleum industry is mature, and Norway may benefit from UK's experiences in decommissioning. The article investigates the applicability of the Wood Review recommendations for decommissioning in Norway. The analysis of the recommendations in the Wood Review is carried out by a SWOT-analysis of the general recommendations with a high potential impact on decommissioning as well as the five recommendations specific to decommissioning. The recommendations in the Wood Review were broadly accepted by UK authorities and formed the basis for numerous initiatives aimed at improving policies and practices in UK decommissioning. The key initiatives are presented to illustrate how the Wood Review recommendations has been interpreted. A summary of the key differences between the petroleum industries and the regulatory authorities in Norway and the UK is provided for background. Decommissioning in Norway face similar challenges to those identified in the Wood Review. The analysis indicates that several of the UK initiatives following the recommendations in the Wood Review has the potential of improving decommissioning in Norway. Differences in regulatory regimes between the regions may complicate the implementation of some of the initiatives following the Wood Review in Norway. In most cases only minor changes to regulations and/or practices are required. Recent UK initiatives with a high impact on decommissioning include increased focus on sharing of information and lessons learned, increased collaboration, the development of a decommissioning strategy, benchmarking of decommissioning cost estimates for all projects and the development and publishing of annual UK decommissioning cost estimates. There are indications that the Norwegian Petroleum Directorate (NPD) and the Norwegian Ministry of Petroleum and Energy (MPE) are falling behind their UK counterparts in key areas. Norway has limited experience with decommissioning, and scrupulous analysis of lessons learned in other regions is essential. Decommissioning of Norwegian offshore infrastructure is a major undertaking and even minor improvements may have a substantial impact on personnel risk, risk to the environment or the total decommissioning expenditure. The Norwegian regulatory regime has been an integral part of the Norwegian petroleum industry's success in previous decades, and changes to the regime require careful deliberation. The recent implementation of initiatives aimed at improving decommissioning regulations and practices in the UK represents a unique learning opportunity for Norwegian authorities. The analysis suggest that Norway may benefit from adopting some of the UK initiatives following the Wood Review recommendations.

scholarly journals ANÁLISE ANTROPOMÉTRICA DE TRABALHADORES EM ATIVIDADES DE IMPLANTAÇÃO FLORESTAL

FLORESTA ◽  
2013 ◽  
Vol 43 (4) ◽  
pp. 525 ◽  
Author(s):  
Eduardo Silva Lopes ◽  
Pedro Caldas Britto ◽  
Erivelton Fontana Laat ◽  
Nilton César Fiedler ◽  
Thabata Palma Vieira
Keyword(s):  
Health And Safety ◽  
Anthropometric Measurements ◽  
Anthropometric Measures ◽  
Health Safety ◽  
Hands And Feet ◽  
A Company ◽  
Improve Health

O objetivo deste trabalho foi realizar uma análise antropométrica de trabalhadores em atividades de implantação florestal, visando a melhoria das condições de saúde e segurança. Medidas antropométricas estáticas foram obtidas em uma amostra de 250 trabalhadores florestais que atuavam em uma empresa localizada no estado do Paraná. Os dados foram obtidos na posição em pé, sentado, da cabeça, das mãos e dos pés e analisados por meio do cálculo de percentis. Foram determinados os padrões antropométricos dos trabalhadores florestais, os limites mínimos e máximos das variáveis, e definidas as suas aplicações no dimensionamento de postos de trabalho, equipamentos e algumas ferramentas utilizadas em atividades de implantação florestal. Alguns resultados foram aplicados na análise de uma plantadora e adubadora, sendo que as medidas de altura e comprimento da pega das hastes da plantadora e adubadora não estavam compatíveis com as variáveis antropométricas dos trabalhadores no percentil de 95%, necessitando de ajustes nas ferramentas para evitar problemas de desconforto no trabalho e possíveis danos à saúde e segurança dos trabalhadores.Palavras-chave: Implantação florestal; antropometria; saúde; segurança. AbstractAnthropometric analysis of workers in forest planting operations. This research aims to evaluate the anthropometric measures of the workers in forest planting operations, to improve health and safety conditions. We obtained static anthropometric measurements from a sample of 250 forest workers who worked in a company located in Paraná State. The data obtained refers to standing and sitting positions, besides head, hands and feet and analyzed by percentile calculations. It was determined the anthropometrics patterns of workers, the minimum and maximum limits of the variables and select their applications in the design of jobs, equipment and some tools for forest planting activities. Measurements of height and length of the handle stem planter and fertilizer weren´t compatible with the anthropometric variables of workers at the 95% percentile, requiring adjustments to avoid problems of discomfort at work and possible damage to the health and safety of workers.Keywords: Forest planting; anthropometry; health; safety.

scholarly journals Personal Liability Of Director Of A Company In Insolvency & Investor Frauds Cases

2021 ◽  
Vol 12 (5) ◽  
pp. 1531-1537
Author(s):  
Dr. Hina Kausar
Keyword(s):  
Criminal Law ◽  
Stock Exchange ◽  
White Collar ◽  
Business Environment ◽  
Small Scale ◽  
Internal Mechanism ◽  
The Impact ◽  
A Company ◽  
Personal Liability ◽  
Responsible Person

The present paper contributes to the understanding of impact of corporate scams and scandals and understanding the reason how these frauds and white-collar crimes impact the investors trust and business environment as a whole. When these scams occur the trust of investors break with each and every turnout. The impact of such corporate scams is not limited to the company where it took place but to each and every business, be it big corporate units or it be some small-scale businesses by directly impacting the stock exchange where the shares are listed. The authors have also tried to focus upon the issues and problems faced by the investors of the company while the company got involved in corporate scams and to figure out the responsible person of the company who will be held accountable in such kind of cases. The present study is limited to the extent of personal liability of a Director and too specifically in the cases of fraud and insolvency. White collar crimes are everywhere these days and that need to be treated as a growing branch of the Criminal law in India. With increase in the Globalization companies are growing and along with it the stakeholders of the company are also growing, any scam done will step back the investors to invest again and more in the company. Thereby with increase in the market share of a company the director of the Company has to establish an internal mechanism to tackle various white -collar crimes nurtured and how these are dealt in the court of law.

Is Australia Prepared for the Decommissioning Challenge? A Regulator's Perspective

2021 ◽  
Author(s):  
David Christensen ◽  
Andrew Re
Keyword(s):  
Environmental Management ◽  
Oil And Gas ◽  
Good Practice ◽  
Petroleum Industry ◽  
Health And Safety ◽  
Regulatory Reform ◽  
Field Development ◽  
Independent Expert ◽  
Offshore Oil And Gas ◽  
Offshore Petroleum

Abstract The National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) is Australia's independent expert regulator for health and safety, structural (well) integrity and environmental management for all offshore oil and gas operations and greenhouse gas storage activities in Australian waters, and in coastal waters where regulatory powers and functions have been conferred. The Australian offshore petroleum industry has been in operation since the early 1960s and currently has approximately 57 platforms, 11 floating facilities, 3,500km of pipelines and 1000 wells in operation. Many offshore facilities are now approaching the end of their operational lives and it is estimated that over the next 50 years decommissioning of this infrastructure will cost more than US$40.5 billion. Decommissioning is a normal and inevitable stage in the lifetime of an offshore petroleum project that should be planned from the outset and matured throughout the life of operations. While only a few facilities have been decommissioned in Australian waters, most of Australia's offshore infrastructure is now more than 20 years old and entering a phase where they require extra attention and close maintenance prior to decommissioning. When the NOGA group of companies entered liquidation in 2020 and the Australian Government took control of decommissioning the Laminaria and Corallina field development it became evident that there were some fundamental gaps in relation to decommissioning in the Australian offshore petroleum industry. There are two key focus areas that require attention. Firstly, regulatory reform including policy change and modification to regulatory practice. Secondly, the development of visible and robust decommissioning plans by Industry titleholders. The purpose of this paper is to highlight the importance and benefit of adopting good practice when planning for decommissioning throughout the life cycle of a petroleum project. Whilst not insurmountable, the closing of these gaps will ensure that Australia is well placed to deal with the decommissioning challenge facing the industry in the next 50 years.

Disqualification Proceedings

2017 ◽  
Author(s):  
Robert Amey
Keyword(s):  
Breach Of Duty ◽  
Directors And Officers ◽  
A Company

Disqualification from being a director or in any way concerned in the management of a company without the leave of the court was brought into effect by the 1929 Act following the recommendations of the Greene Committee. An undischarged bankrupt was disqualified by virtue of his status and the court was given power to disqualify for up to five years promoters, directors, and officers of a company ordered to be wound up who had committed fraud and persons responsible for fraudulent trading. The 1948 Act extended the power to disqualify to officers of the company who had been guilty of any breach of duty.

scholarly journals Proper Use of Technical Standards in Offshore Petroleum Industry

2020 ◽  
Vol 8 (8) ◽  
pp. 555 ◽  
Author(s):  
Dejan Brkić ◽  
Pavel Praks
Keyword(s):  
Large Scale ◽  
Oil And Gas ◽  
Petroleum Industry ◽  
Health And Safety ◽  
Oil And Gas Industry ◽  
European Economic Area ◽  
The European Union ◽  
Technical Standards ◽  
The North ◽  
Offshore Petroleum

Ships for drilling need to operate in the territorial waters of many different countries which can have different technical standards and procedures. For example, the European Union and European Economic Area EU/EEA product safety directives exclude from their scope drilling ships and related equipment onboard. On the other hand, the EU/EEA offshore safety directive requires the application of all the best technical standards that are used worldwide in the oil and gas industry. Consequently, it is not easy to select the most appropriate technical standards that increase the overall level of safety and environmental protection whilst avoiding the costs of additional certifications. We will show how some technical standards and procedures, which are recognized worldwide by the petroleum industry, can be accepted by various standardization bodies, and how they can fulfil the essential health and safety requirements of certain directives. Emphasis will be placed on the prevention of fire and explosion, on the safe use of equipment under pressure, and on the protection of personnel who work with machinery. Additionally considered is how the proper use of adequate procedures available at the time would have prevented three large scale offshore petroleum accidents: the Macondo Deepwater Horizon in the Gulf of Mexico in 2010; the Montara in the Timor Sea in 2009; the Piper Alpha in the North Sea in 1988.

Negligent misstatement–a healthier decision for company directors

1998 ◽  
Vol 57 (3) ◽  
pp. 429-471
Author(s):  
Jennifer Payne
Keyword(s):  
Small Companies ◽  
House Of Lords ◽  
Company Directors ◽  
Special Circumstances ◽  
A Company ◽  
Personal Liability ◽  
Natural Life

THE decision of the House of Lords in Williams v. Natural Life Health Foods Ltd. [1998] 1 W.L.R. 830, reversing the Court of Appeal's decision ([1997] 1 B.C.L.C. 131), examines the issue of an agent's liability for negligent misstatement. Of course, agents will be personally responsible for their own negligence, even if that tort is committed while on the principal's business, but what is their responsibility for the negligence of their principal? Logically the answer is “none”, and certainly in a company context statements made by directors on behalf of their companies have traditionally led to liability for the principal alone: “a company director is only to be held personally liable for the company's negligent misstatements if the plaintiffs can establish some special circumstances setting the case apart from the ordinary . . .” ([1997] 1 B.C.L.C. 131, 152 per Hirst L.J.). The Court of Appeal's decision in Williams, however, threatened to expand this category of “special circumstances” to such an extent as to make personal liability the norm for directors, at least in the context of small companies.

An examination of the quality of social and environmental disclosures by Nigerian oil companies

2016 ◽  
Vol 16 (2) ◽  
pp. 400-419 ◽  
Author(s):  
Odhiambo Odera ◽  
Albert Scott ◽  
Jeff Gow
Keyword(s):  
Large Scale ◽  
Health And Safety ◽  
Annual Reports ◽  
Content Type ◽  
Oil Companies ◽  
Environmental Disclosures ◽  
Oil Company ◽  
A Company ◽  
Tests For Normality

Purpose This study seeks to examine the quantity and quality of social and environmental disclosures (SEDs) of Nigerian oil companies. The study aims to analyse SED activities as reported by the oil companies in their annual reports. Design/methodology/approach The study analyses annual reports through content analysis. SED quantity is measured by alternative two units: number of sentences and number of pages. A two-point scale system to assess SED quality is used as follows: 1 = if SED is quantitative and reports specific activities of a company concerning its social and environmental responsibility; 0 = otherwise. Correlation analysis is performed among the different SED categories to identify the relationships among them. Kolmongrov–Smirnov and Shapiro–Wilk tests for normality are utilised. Findings SED activities are reported by most of the companies, and by quantity, employee information is found to be the most common type of disclosure. SED quantity and quality in the environment category is found to be overwhelmingly low despite the large-scale public concern expressed about the levels of the environmental degradation caused by oil company operations. Research limitations/implications The data collected for this study are based on one country, which controls diversity but limits the generalizability of the findings. The study is limited by the sample which includes mainly quoted companies, as they are believed to make improved disclosures because of their investor orientation and statutory obligations. Originality/value The study extends SED research by focusing on social disclosures such as employee-, community- and health- and safety-related disclosures. The study also investigates the motivations of SED providers and establishes a link between stakeholder demands/engagement and the level of disclosure.

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