Macquarie Point Development Corporation Act 2012

A director must prevent the Corporation from incurring a debt if – the Corporation is insolvent at that time or will become insolvent by incurring at that time the debt or debts which include that debt; and at that time there are reasonable grounds for suspecting that the Corporation is insolvent or would become insolvent by incurring the debt or those debts; and the director is aware of those grounds or a reasonable person in the position of director would be aware of those grounds.

A director is guilty of an offence and liable, on conviction, to a penalty of a fine not exceeding 2 000 penalty units or a term of imprisonment not exceeding 5 years, or both, if he or she contravenes subsection (1) knowingly, intentionally or recklessly and – dishonestly and intending to gain, directly or indirectly, an advantage for himself or herself or another person; or intending to deceive or defraud any person.

It is a defence for an offence against subsection (2) or for a contravention of subsection (1) in proceedings under section 27 if it is proved – that, at the time the debt was incurred, the director – had reasonable grounds to believe and did believe that a competent and reliable person was responsible for providing the director with adequate information as to whether the Corporation was solvent; and had reasonable grounds to believe and did believe that the person referred to in subparagraph (i) was fulfilling the responsibility referred to in that subparagraph; and expected, on the basis of information provided by the person referred to in subparagraph (i), that the Corporation was solvent at that time and would remain solvent even if it incurred the debt and any other debts that it incurred at that time; or that, at the time when the debt was incurred, the director had other reasonable grounds to expect, and did expect, that the Corporation was solvent and would remain solvent even if it incurred the debt and any other debts that it incurred at that time; or that the director took all reasonable steps to prevent the Corporation from incurring the debt; or that the director did not take part at the time in the Corporation's management because of illness or for some other good cause; or that the director informed the Minister, before the debt was incurred, that the Corporation was insolvent or would become insolvent if the debt or the debt and other debts were incurred; or that the debt was incurred as the direct result of a direction given under this Act to the director or the Corporation by the Minister.