Workers Compensation Act 1987

If the Authority is entitled to recover an amount from a corporation under section 175 (4) or (4AA) (even if the corporation has ceased to exist) and the amount is not recoverable from the corporation, the Authority is entitled to recover the amount from a person who was a culpable director of the corporation at the relevant time.

An amount is considered to be not recoverable from a corporation if the Authority certifies that it will be unable or unlikely to recover the amount from the corporation by reasonable efforts at recovery, whether because the corporation is being wound up and is unable to pay its debts, or otherwise.

A person is a culpable director of a corporation at the relevant time if the person was a director of the corporation at the time that the false or misleading information to which the entitlement of the Authority relates was provided to the insurer concerned (whether or not the corporation has been proceeded against or convicted of an offence in respect of the provision of that information).

A person is not a culpable director of a corporation if the person establishes that—

the person did not know that the information provided by the corporation was false or misleading in a material particular, or

the person was not in a position to influence the conduct of the corporation in relation to the provision of false or misleading information, or

the person, being in such a position, used all due diligence to prevent the provision by the corporation of false or misleading information.

If there is a right of recovery against more than one director of a corporation in respect of the same amount, the right is a right against all those directors jointly and severally.

A director from whom an amount is recovered under this section is entitled to recover the amount from the corporation.

This section does not apply to an entitlement of the Authority that arises from the provision of false or misleading information by a corporation before the commencement of this section.