Executive officers responsible for ensuring corporation complies with Act
203 Executive officers responsible for ensuring corporation complies with Act
The executive officers of a corporation must ensure the corporation complies with this Act.
If a corporation commits an offence against a provision of this Act, each of the corporation’s executive officers also commits an offence, namely, the offence of failing to ensure the corporation complies with the provision.
Maximum penalty—the penalty for the contravention of the provision by an individual.
Evidence that the corporation has been convicted of an offence against a provision of this Act is evidence that each of the executive officers committed the offence of failing to ensure the corporation complies with the provision.
However, it is a defence for an executive officer to prove—
if the officer was in a position to influence the conduct of the corporation in relation to the offence—the officer exercised reasonable diligence to ensure the corporation complied with the provision; or
the officer was not in a position to influence the conduct of the corporation in relation to the offence.
This Act’s bill:Explanatory memorandum
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