Document ID: chunk:federal_register_of_legislation:C2024C00800:section:245au
Version: federal_register_of_legislation:C2024C00800
Segment Type: section
Provision Reference: s 245AU
Character Range: 701727–704259

245AU  Civil liability of executive officers of bodies corporate
 (1) An executive officer of a body corporate contravenes this subsection if:
 (a) the body contravenes (the sponsorship‑related contravention) a civil penalty provision in this Subdivision; and
 (b) the officer knew that, or was reckless or negligent as to whether, the sponsorship‑related contravention would occur; and
 (c) the officer was in a position to influence the conduct of the body in relation to the sponsorship‑related contravention; and
 (d) the officer failed to take all reasonable steps to prevent the sponsorship‑related contravention.
Note: Section 486ZF (which provides that a person's state of mind does not need to be proven in proceedings for a civil penalty order) does not apply in relation to a contravention of this subsection.

Civil penalty provision
 (2) An executive officer of a body corporate is liable to a civil penalty if the officer contravenes subsection (1).
Civil penalty: 240 penalty units.

Reasonable steps to prevent the contravention
 (3) In determining whether the executive officer of the body corporate failed to take all reasonable steps to prevent the sponsorship‑related contravention by the body, a court must have regard to:
 (a) what action (if any) the officer took towards ensuring that the body's employees, agents and contractors had a reasonable knowledge and understanding of the requirements to comply with this Subdivision, insofar as those requirements affected the employees, agents or contractors concerned; and
 (b) what action (if any) the officer took when he or she became aware that the body was engaging in the sponsorship‑related contravention.
 (4) Subsection (3) does not limit subsection (1).

Definitions
 (5) In this section:
negligent: an executive officer of a body corporate is negligent as to whether a sponsorship‑related contravention would occur if the officer's conduct involves:
 (a) such a great falling short of the standard of care that a reasonable person would exercise in the circumstances; and
 (b) such a high risk that the sponsorship‑related contravention would occur;
that the conduct merits the imposition of a pecuniary penalty.
reckless: an executive officer of a body corporate is reckless as to whether a sponsorship‑related contravention would occur if:
 (a) the officer is aware of a substantial risk that the sponsorship‑related contravention would occur; and
 (b) having regard to the circumstances known to the officer, it is unjustifiable to take the risk.