Civil penalties for executive officers of bodies corporate
521 Civil penalties for executive officers of bodies corporate
An executive officer of a body corporate contravenes this subsection if:
the body corporate contravenes a civil penalty provision; and
the executive officer knew that, or was reckless or negligent as to whether, the contravention would occur; and
the officer was in a position to influence the conduct of the body corporate in relation to the contravention; and
the officer failed to take all reasonable steps to prevent the contravention.
Civil penalty provision
A person is liable to a civil penalty if the person contravenes subsection (1).
Civil penalty: 120 penalty units.
Recklessness
For the purposes of subsection (1), the officer is reckless as to whether the contravention would occur if:
the officer is aware of a substantial risk that the contravention would occur; and
having regard to the circumstances known to the officer, it is unjustifiable to take the risk.
Negligence
For the purposes of subsection (1), the officer is negligent as to whether the contravention would occur if the officer’s conduct involves:
such a great falling short of the standard of care that a reasonable person would exercise in the circumstances; and
such a high risk that the contravention would occur;
that the conduct merits the imposition of a pecuniary penalty.
Reasonable steps to prevent contravention
For the purposes of subsection (1), in determining whether an executive officer of a body corporate failed to take all reasonable steps to prevent a contravention, a court may have regard to all relevant matters, including:
what action (if any) the officer took directed towards ensuring the following (to the extent that the action is relevant to the contravention):
that the body corporate arranges regular professional assessments of the body corporate’s compliance with civil penalty provisions;
that the body corporate implements any appropriate recommendations arising from such an assessment;
that the body corporate’s employees, agents and contractors have a reasonable knowledge and understanding of the requirements to comply with civil penalty provisions in so far as those requirements affect the employees, agents or contractors concerned; and
what action (if any) the officer took when he or she became aware of the contravention.
Subsection (5) does not limit subsection (1).
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