Companies and directors will now only be liable if they had “knowledge,recklessness or negligence” that the information they share is wrong.
"The heightened level of uncertainty around companies’ future prospects as a result of the crisis also exposes companies to the threat of opportunistic class actions for allegedly falling foul of their continuous disclosure obligations if their forecasts are found to be inaccurate,"Mr Frydenberg said.
The changes are designed to make it harder for shareholders to sue companies if the information they provide about their prospects is proven incorrect as the coronavirus pandemic makes financial forecasting difficult.
"The changes announced today will make it harder to bring such actions against companies and officers’ during the Coronavirus crisis and while allowing the market to continue to stay informed and function effectively,"Mr Frydenberg said in a statement.
A string of major ASX-listed companies have pulled their financial forecasts since the coronavirus pandemic took hold,forcing widespread business closures across various sectors.
Australian Institute of Company Directors chief executive Angus Armour welcomed the announcement.
"While we are strongly supportive of a robust continuous disclosure regime to maintain market integrity,practically the current environment does not allow the same confidence in making forward statements or providing guidance,"Mr Armour said.