Public Corporations Act 1993

Subject to subsection (2), a transaction to which a public corporation is a party or apparently a party (whether made or apparently made under the corporation's common seal or by a person with authority to bind the corporation) is not invalid because of—

any deficiency of power on the part of the corporation; or

any procedural irregularity on the part of the board or any director, employee or agent of the corporation; or

any procedural irregularity affecting the appointment of a director, employee or agent of the corporation.

This section does not validate a transaction in favour of a party—

who enters into the transaction with actual knowledge of the deficiency or irregularity; or

who has a connection or relationship with the corporation such that the person ought to know of the deficiency or irregularity.