Prohibition on loans to directors
418 Prohibition on loans to directors
WorkCover must not, whether directly or indirectly—
make a loan to a WorkCover director, a spouse of a director or a relative of a director or spouse; or
give a guarantee or provide security in connection with a loan made to a WorkCover director, a spouse of a director or a relative of a director or spouse.
Subsection (1) does not apply to the entering into by WorkCover of an instrument with a person mentioned in subsection (1) if the instrument is entered into on the same terms as similar instruments, if any, are entered into by WorkCover with members of the public.
A WorkCover director must not be knowingly concerned in a contravention of subsection (1) by WorkCover (whether or not in relation to the director).
Maximum penalty—100 penalty units.
In this section—
relative means—
a parent or remoter lineal ancestor; or
a son, daughter or remoter issue; or
a brother or sister.
This Act’s bill:Explanatory memorandum
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