There is an old fairytale about a boy who cried wolf. The story is a parable for the importance of reputation. The boy who falsely screamed that a wolf was coming would later not be believed when an animal really was really baying at his door. The moral of the story is that one shouldn’t warn of dangers that are not really there because their credibility will be harmed. John Colvin and the Australian Institute of Company Directors would be well advised to read the parable.

In Wednesday’s Australian Financial Review, Colvin wrote another lengthy article criticising the onerous liabilities being faced by company directors. Colvin claimed: