Section 731 of the Local Government Act 1993 (NSW) does not protect council employees from criminal prosecution, even where the employee acted in good faith for the purpose of executing the Act. The word 'liability' in the phrase 'action, liability, claim or demand' does not extend to criminal liability when read in context with the associated civil law terms. Where a prosecutor authorised under s 179 of the National Parks and Wildlife Act 1974 commences proceedings 'for and on behalf of' the Director-General rather than in their own right, this is a defect curable under s 16(2) of the Criminal Procedure Act 1986.
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