{"id":"qld:sl-2021-0088","name":"South-East Queensland Water (Distribution and Retail Restructuring) Regulation 2021","slug":"south-east-queensland-water-distribution-and-retail-restructuring-regulation-2021","collection":"regulation","jurisdiction":"qld","status":"in_force","isInForce":true,"actNumber":"88 of 2021","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":173890,"registerId":"qld-sl-2021-0088-current","compilationNumber":null,"startDate":"2026-04-05","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"pt.1","sectionType":"part","heading":"Preliminary","content":"# Preliminary","sortOrder":0},{"sectionNumber":"sec.1","sectionType":"section","heading":"Short title","content":"### sec.1 Short title\n\nThis regulation may be cited as the South-East Queensland Water (Distribution and Retail Restructuring) Regulation 2021 .","sortOrder":1},{"sectionNumber":"sec.2","sectionType":"section","heading":"Main purposes of regulation","content":"### sec.2 Main purposes of regulation\n\nThe main purposes of this regulation are to do the following—\nprovide, in relation to distributor-retailers, boards, officers or employees of distributor-retailers, for particular matters that the Corporations Act provides for corporations;\nprovide for a right to compensation for a contravention of a matter provided for under paragraph (a) .\n- (a) provide, in relation to distributor-retailers, boards, officers or employees of distributor-retailers, for particular matters that the Corporations Act provides for corporations;\n- (b) provide for a right to compensation for a contravention of a matter provided for under paragraph (a) .","sortOrder":2},{"sectionNumber":"sec.3","sectionType":"section","heading":"Definitions","content":"### sec.3 Definitions\n\nIn this regulation—\nboard member , of a distributor-retailer, means a member of the board of the distributor-retailer.\ncompensation order see section 22 (1) .\ndeclaration of contravention see section 20 (1) .\nofficer , of a distributor-retailer, means—\na person who is appointed as an officer of the distributor-retailer; and\nanyone else who—\nmakes, or participates in making, decisions that affect the whole, or a substantial part, of the business of the distributor-retailer; or\nhas the capacity to affect significantly the distributor-retailer’s financial standing.\n- (a) a person who is appointed as an officer of the distributor-retailer; and\n- (b) anyone else who— (i) makes, or participates in making, decisions that affect the whole, or a substantial part, of the business of the distributor-retailer; or (ii) has the capacity to affect significantly the distributor-retailer’s financial standing.\n- (i) makes, or participates in making, decisions that affect the whole, or a substantial part, of the business of the distributor-retailer; or\n- (ii) has the capacity to affect significantly the distributor-retailer’s financial standing.\n- (i) makes, or participates in making, decisions that affect the whole, or a substantial part, of the business of the distributor-retailer; or\n- (ii) has the capacity to affect significantly the distributor-retailer’s financial standing.","sortOrder":3},{"sectionNumber":"sec.4","sectionType":"section","heading":"References to Corporations Act","content":"### sec.4 References to Corporations Act\n\nIn this regulation, the information included in square brackets after a section heading is a reference to a similar section of the Corporations Act .\nThe brackets and information do not form part of this regulation.\n(sec.4-ssec.1) In this regulation, the information included in square brackets after a section heading is a reference to a similar section of the Corporations Act .\n(sec.4-ssec.2) The brackets and information do not form part of this regulation.","sortOrder":4},{"sectionNumber":"pt.2","sectionType":"part","heading":"Board members and officers","content":"# Board members and officers","sortOrder":5},{"sectionNumber":"pt.2-div.1","sectionType":"division","heading":"General duties","content":"## General duties","sortOrder":6},{"sectionNumber":"sec.5","sectionType":"section","heading":"Care and diligence—civil obligation only [CA, s 180 ]","content":"### sec.5 Care and diligence—civil obligation only [CA, s 180 ]\n\nA board member or an officer of a distributor-retailer must exercise their powers and discharge their duties with the degree of care and diligence that a reasonable person would exercise if they—\nwere a board member or an officer of a distributor-retailer in the distributor-retailer’s circumstances; and\noccupied the office held by, and had the same responsibilities within the distributor-retailer as, the board member or officer.\nIn deciding the degree of care and diligence required under subsection (1) , regard must be had to—\nthe distributor-retailer’s geographic area functions; and\nthe distributor-retailer’s other functions under the Act ; and\nthe distributor-retailer’s other functions under another Act including, for example, the Financial Accountability Act 2009 , Statutory Bodies Financial Arrangements Act 1982 , Water Act and Water Supply Act ; and\nany requirement under the distributor-retailer’s participation agreement; and\nany relevant local government direction given to the distributor-retailer.\nA board member or an officer of a distributor-retailer who makes a business judgment is taken to meet the requirements of subsection (1) , and their equivalent duties at common law and in equity, in respect of the judgment if they—\nmake the judgment in good faith for a proper purpose, taking into account any relevant matters mentioned in subsection (2) ; and\ndo not have a material personal interest in the subject matter of the judgment; and\ninform themselves about the subject matter of the judgment to the extent they reasonably believe to be appropriate; and\nrationally believe the judgment is in the distributor-retailer’s best interests.\nFor subsection (3) (d) , the board member’s or the officer’s belief that the judgment is in the distributor-retailer’s best interests is a rational one unless the belief is one that no reasonable person in their position would hold.\nIn this section—\nbusiness judgment means any decision to take or not take action about a matter relevant to the business operations of the distributor-retailer.\nfunctions includes powers.\n(sec.5-ssec.1) A board member or an officer of a distributor-retailer must exercise their powers and discharge their duties with the degree of care and diligence that a reasonable person would exercise if they— were a board member or an officer of a distributor-retailer in the distributor-retailer’s circumstances; and occupied the office held by, and had the same responsibilities within the distributor-retailer as, the board member or officer.\n(sec.5-ssec.2) In deciding the degree of care and diligence required under subsection (1) , regard must be had to— the distributor-retailer’s geographic area functions; and the distributor-retailer’s other functions under the Act ; and the distributor-retailer’s other functions under another Act including, for example, the Financial Accountability Act 2009 , Statutory Bodies Financial Arrangements Act 1982 , Water Act and Water Supply Act ; and any requirement under the distributor-retailer’s participation agreement; and any relevant local government direction given to the distributor-retailer.\n(sec.5-ssec.3) A board member or an officer of a distributor-retailer who makes a business judgment is taken to meet the requirements of subsection (1) , and their equivalent duties at common law and in equity, in respect of the judgment if they— make the judgment in good faith for a proper purpose, taking into account any relevant matters mentioned in subsection (2) ; and do not have a material personal interest in the subject matter of the judgment; and inform themselves about the subject matter of the judgment to the extent they reasonably believe to be appropriate; and rationally believe the judgment is in the distributor-retailer’s best interests.\n(sec.5-ssec.4) For subsection (3) (d) , the board member’s or the officer’s belief that the judgment is in the distributor-retailer’s best interests is a rational one unless the belief is one that no reasonable person in their position would hold.\n(sec.5-ssec.5) In this section— business judgment means any decision to take or not take action about a matter relevant to the business operations of the distributor-retailer. functions includes powers.\n- (a) were a board member or an officer of a distributor-retailer in the distributor-retailer’s circumstances; and\n- (b) occupied the office held by, and had the same responsibilities within the distributor-retailer as, the board member or officer.\n- (a) the distributor-retailer’s geographic area functions; and\n- (b) the distributor-retailer’s other functions under the Act ; and\n- (c) the distributor-retailer’s other functions under another Act including, for example, the Financial Accountability Act 2009 , Statutory Bodies Financial Arrangements Act 1982 , Water Act and Water Supply Act ; and\n- (d) any requirement under the distributor-retailer’s participation agreement; and\n- (e) any relevant local government direction given to the distributor-retailer.\n- (a) make the judgment in good faith for a proper purpose, taking into account any relevant matters mentioned in subsection (2) ; and\n- (b) do not have a material personal interest in the subject matter of the judgment; and\n- (c) inform themselves about the subject matter of the judgment to the extent they reasonably believe to be appropriate; and\n- (d) rationally believe the judgment is in the distributor-retailer’s best interests.","sortOrder":7},{"sectionNumber":"sec.6","sectionType":"section","heading":"Good faith—civil obligations [CA, s 181 ]","content":"### sec.6 Good faith—civil obligations [CA, s 181 ]\n\nA board member or an officer of a distributor-retailer must exercise their powers and discharge their duties—\nin good faith in the distributor-retailer’s best interests; and\nfor a proper purpose.\n- (a) in good faith in the distributor-retailer’s best interests; and\n- (b) for a proper purpose.","sortOrder":8},{"sectionNumber":"sec.7","sectionType":"section","heading":"Use of position—civil obligations [CA, s 182 ]","content":"### sec.7 Use of position—civil obligations [CA, s 182 ]\n\nA board member or an officer of a distributor-retailer must not improperly use their position to—\ngain an advantage for themselves or someone else; or\ncause detriment to the distributor-retailer.\n- (a) gain an advantage for themselves or someone else; or\n- (b) cause detriment to the distributor-retailer.","sortOrder":9},{"sectionNumber":"sec.8","sectionType":"section","heading":"Use of information—civil obligations [CA, s 183 ]","content":"### sec.8 Use of information—civil obligations [CA, s 183 ]\n\nA board member or an officer of a distributor-retailer must not use information, obtained because they are or have been a board member or an officer, to improperly—\ngain an advantage for themselves or someone else; or\ncause detriment to the distributor-retailer.\n- (a) gain an advantage for themselves or someone else; or\n- (b) cause detriment to the distributor-retailer.","sortOrder":10},{"sectionNumber":"sec.9","sectionType":"section","heading":"Good faith, use of position and use of information—criminal offences [CA, s 184 ]","content":"### sec.9 Good faith, use of position and use of information—criminal offences [CA, s 184 ]\n\nA board member or officer of a distributor-retailer commits an offence if they—\nare reckless or are intentionally dishonest; and\nfail to exercise their powers and discharge their duties—\nin good faith in the best interests of the distributor-retailer; or\nfor a proper purpose.\nMaximum penalty—20 penalty units.\nA board member or officer of a distributor-retailer commits an offence if they use their position—\ndishonestly with the intention of directly or indirectly gaining an advantage for themselves, or someone else, or causing detriment to the distributor-retailer; or\nrecklessly as to whether the use may result in themselves or someone else directly or indirectly gaining an advantage, or in causing detriment to the distributor-retailer.\nMaximum penalty—20 penalty units.\nA person who obtains information because they are, or have been, a board member or officer of a distributor-retailer commits an offence if they use the information—\ndishonestly with the intention of directly or indirectly gaining an advantage for themselves, or someone else, or causing detriment to the distributor-retailer; or\nrecklessly as to whether the use may result in themselves or someone else directly or indirectly gaining an advantage, or in causing detriment to the distributor-retailer.\nMaximum penalty—20 penalty units.\n(sec.9-ssec.1) A board member or officer of a distributor-retailer commits an offence if they— are reckless or are intentionally dishonest; and fail to exercise their powers and discharge their duties— in good faith in the best interests of the distributor-retailer; or for a proper purpose. Maximum penalty—20 penalty units.\n(sec.9-ssec.2) A board member or officer of a distributor-retailer commits an offence if they use their position— dishonestly with the intention of directly or indirectly gaining an advantage for themselves, or someone else, or causing detriment to the distributor-retailer; or recklessly as to whether the use may result in themselves or someone else directly or indirectly gaining an advantage, or in causing detriment to the distributor-retailer. Maximum penalty—20 penalty units.\n(sec.9-ssec.3) A person who obtains information because they are, or have been, a board member or officer of a distributor-retailer commits an offence if they use the information— dishonestly with the intention of directly or indirectly gaining an advantage for themselves, or someone else, or causing detriment to the distributor-retailer; or recklessly as to whether the use may result in themselves or someone else directly or indirectly gaining an advantage, or in causing detriment to the distributor-retailer. Maximum penalty—20 penalty units.\n- (a) are reckless or are intentionally dishonest; and\n- (b) fail to exercise their powers and discharge their duties— (i) in good faith in the best interests of the distributor-retailer; or (ii) for a proper purpose.\n- (i) in good faith in the best interests of the distributor-retailer; or\n- (ii) for a proper purpose.\n- (i) in good faith in the best interests of the distributor-retailer; or\n- (ii) for a proper purpose.\n- (a) dishonestly with the intention of directly or indirectly gaining an advantage for themselves, or someone else, or causing detriment to the distributor-retailer; or\n- (b) recklessly as to whether the use may result in themselves or someone else directly or indirectly gaining an advantage, or in causing detriment to the distributor-retailer.\n- (a) dishonestly with the intention of directly or indirectly gaining an advantage for themselves, or someone else, or causing detriment to the distributor-retailer; or\n- (b) recklessly as to whether the use may result in themselves or someone else directly or indirectly gaining an advantage, or in causing detriment to the distributor-retailer.","sortOrder":11},{"sectionNumber":"sec.10","sectionType":"section","heading":"Interaction of ss 6 – 10 with other laws etc. [CA, s 185 ]","content":"### sec.10 Interaction of ss 6 – 10 with other laws etc. [CA, s 185 ]\n\nSections 6 to 10 —\nhave effect in addition to, and not in derogation of, any law relating to the duty or liability of a person because of their office or employment in relation to a distributor-retailer; and\ndo not prevent the commencement of civil proceedings for a breach of a duty or in respect of a liability mentioned in paragraph (a) .\nHowever, subsection (1) does not apply to section 6 (3) , (4) and (5) to the extent to which those subsections operate on the duties at common law and in equity that are equivalent to the requirements under section 6 (1) .\n(sec.10-ssec.1) Sections 6 to 10 — have effect in addition to, and not in derogation of, any law relating to the duty or liability of a person because of their office or employment in relation to a distributor-retailer; and do not prevent the commencement of civil proceedings for a breach of a duty or in respect of a liability mentioned in paragraph (a) .\n(sec.10-ssec.2) However, subsection (1) does not apply to section 6 (3) , (4) and (5) to the extent to which those subsections operate on the duties at common law and in equity that are equivalent to the requirements under section 6 (1) .\n- (a) have effect in addition to, and not in derogation of, any law relating to the duty or liability of a person because of their office or employment in relation to a distributor-retailer; and\n- (b) do not prevent the commencement of civil proceedings for a breach of a duty or in respect of a liability mentioned in paragraph (a) .","sortOrder":12},{"sectionNumber":"sec.11","sectionType":"section","heading":"Duty of confidentiality","content":"### sec.11 Duty of confidentiality\n\nA board member of a distributor-retailer owes a duty of confidentiality to the distributor-retailer to the same extent as if the distributor-retailer was a company registered under the Corporations Act and the board member was a director of the company.","sortOrder":13},{"sectionNumber":"sec.12","sectionType":"section","heading":"Reliance on information or advice provided by others [CA, s 189 ]","content":"### sec.12 Reliance on information or advice provided by others [CA, s 189 ]\n\nThis section applies if—\na board member of a distributor-retailer relies on information, or professional or expert advice, given or prepared by—\nan officer or an employee of the distributor-retailer whom the board member believes on reasonable grounds to be reliable and competent in relation to the matters concerned; or\na professional adviser or expert relating to matters the board member believes on reasonable grounds to be within the person’s professional or expert competence; or\nanother board member relating to matters within the board member’s authority; or\na committee of board members on which the board member did not serve relating to matters within the committee’s authority; and\nthe reliance was made—\nin good faith; and\nafter making an independent assessment of the information or advice, having regard to the board member’s knowledge of the distributor-retailer and the complexity of the structure and operations of the distributor-retailer; and\nthe reasonableness of the board member’s reliance on the information or advice arises in proceedings brought to decide whether a board member has performed a duty under this part or an equivalent general law duty.\nThe board member’s reliance on the information or advice is taken to be reasonable unless the contrary is proved.\n(sec.12-ssec.1) This section applies if— a board member of a distributor-retailer relies on information, or professional or expert advice, given or prepared by— an officer or an employee of the distributor-retailer whom the board member believes on reasonable grounds to be reliable and competent in relation to the matters concerned; or a professional adviser or expert relating to matters the board member believes on reasonable grounds to be within the person’s professional or expert competence; or another board member relating to matters within the board member’s authority; or a committee of board members on which the board member did not serve relating to matters within the committee’s authority; and the reliance was made— in good faith; and after making an independent assessment of the information or advice, having regard to the board member’s knowledge of the distributor-retailer and the complexity of the structure and operations of the distributor-retailer; and the reasonableness of the board member’s reliance on the information or advice arises in proceedings brought to decide whether a board member has performed a duty under this part or an equivalent general law duty.\n(sec.12-ssec.2) The board member’s reliance on the information or advice is taken to be reasonable unless the contrary is proved.\n- (a) a board member of a distributor-retailer relies on information, or professional or expert advice, given or prepared by— (i) an officer or an employee of the distributor-retailer whom the board member believes on reasonable grounds to be reliable and competent in relation to the matters concerned; or (ii) a professional adviser or expert relating to matters the board member believes on reasonable grounds to be within the person’s professional or expert competence; or (iii) another board member relating to matters within the board member’s authority; or (iv) a committee of board members on which the board member did not serve relating to matters within the committee’s authority; and\n- (i) an officer or an employee of the distributor-retailer whom the board member believes on reasonable grounds to be reliable and competent in relation to the matters concerned; or\n- (ii) a professional adviser or expert relating to matters the board member believes on reasonable grounds to be within the person’s professional or expert competence; or\n- (iii) another board member relating to matters within the board member’s authority; or\n- (iv) a committee of board members on which the board member did not serve relating to matters within the committee’s authority; and\n- (b) the reliance was made— (i) in good faith; and (ii) after making an independent assessment of the information or advice, having regard to the board member’s knowledge of the distributor-retailer and the complexity of the structure and operations of the distributor-retailer; and\n- (i) in good faith; and\n- (ii) after making an independent assessment of the information or advice, having regard to the board member’s knowledge of the distributor-retailer and the complexity of the structure and operations of the distributor-retailer; and\n- (c) the reasonableness of the board member’s reliance on the information or advice arises in proceedings brought to decide whether a board member has performed a duty under this part or an equivalent general law duty.\n- (i) an officer or an employee of the distributor-retailer whom the board member believes on reasonable grounds to be reliable and competent in relation to the matters concerned; or\n- (ii) a professional adviser or expert relating to matters the board member believes on reasonable grounds to be within the person’s professional or expert competence; or\n- (iii) another board member relating to matters within the board member’s authority; or\n- (iv) a committee of board members on which the board member did not serve relating to matters within the committee’s authority; and\n- (i) in good faith; and\n- (ii) after making an independent assessment of the information or advice, having regard to the board member’s knowledge of the distributor-retailer and the complexity of the structure and operations of the distributor-retailer; and","sortOrder":14},{"sectionNumber":"pt.2-div.2","sectionType":"division","heading":"Restrictions on indemnities and insurance","content":"## Restrictions on indemnities and insurance","sortOrder":15},{"sectionNumber":"sec.13","sectionType":"section","heading":"Indemnification and exemption of board member or officer [CA, s 199A ]","content":"### sec.13 Indemnification and exemption of board member or officer [CA, s 199A ]\n\nA distributor-retailer must not exempt a person (whether directly or through an interposed entity) from a liability to the distributor-retailer incurred as a board member or an officer of the distributor-retailer.\nA distributor-retailer must not indemnify a person against any of the following liabilities incurred as a board member or an officer of the distributor-retailer—\na liability owed to the distributor-retailer;\na liability for a compensation order;\na liability that is owed to someone, other than the distributor-retailer, that did not arise out of conduct in good faith.\nSubsection (2) does not apply to a liability for legal costs.\nA distributor-retailer must not indemnify a person against legal costs incurred in defending an action for a liability incurred as a board member or an officer of the distributor-retailer if the costs are incurred—\nin defending or resisting proceedings in which the person is found to have a liability for which they could not be indemnified under subsection (2) ; or\nin defending or resisting criminal proceedings in which the person is found guilty.\nFor subsection (4) , the outcome of proceedings is the outcome of the proceedings and any appeal in relation to the proceedings.\nIn this section—\nindemnify , a person, includes—\nindemnify the person by agreement; and\nindemnify the person by making a payment to the person; and\ndirectly indemnify the person; and\nindirectly indemnify the person through an interposed entity.\n(sec.13-ssec.1) A distributor-retailer must not exempt a person (whether directly or through an interposed entity) from a liability to the distributor-retailer incurred as a board member or an officer of the distributor-retailer.\n(sec.13-ssec.2) A distributor-retailer must not indemnify a person against any of the following liabilities incurred as a board member or an officer of the distributor-retailer— a liability owed to the distributor-retailer; a liability for a compensation order; a liability that is owed to someone, other than the distributor-retailer, that did not arise out of conduct in good faith.\n(sec.13-ssec.3) Subsection (2) does not apply to a liability for legal costs.\n(sec.13-ssec.4) A distributor-retailer must not indemnify a person against legal costs incurred in defending an action for a liability incurred as a board member or an officer of the distributor-retailer if the costs are incurred— in defending or resisting proceedings in which the person is found to have a liability for which they could not be indemnified under subsection (2) ; or in defending or resisting criminal proceedings in which the person is found guilty.\n(sec.13-ssec.5) For subsection (4) , the outcome of proceedings is the outcome of the proceedings and any appeal in relation to the proceedings.\n(sec.13-ssec.6) In this section— indemnify , a person, includes— indemnify the person by agreement; and indemnify the person by making a payment to the person; and directly indemnify the person; and indirectly indemnify the person through an interposed entity.\n- (a) a liability owed to the distributor-retailer;\n- (b) a liability for a compensation order;\n- (c) a liability that is owed to someone, other than the distributor-retailer, that did not arise out of conduct in good faith.\n- (a) in defending or resisting proceedings in which the person is found to have a liability for which they could not be indemnified under subsection (2) ; or\n- (b) in defending or resisting criminal proceedings in which the person is found guilty.\n- (a) indemnify the person by agreement; and\n- (b) indemnify the person by making a payment to the person; and\n- (c) directly indemnify the person; and\n- (d) indirectly indemnify the person through an interposed entity.","sortOrder":16},{"sectionNumber":"sec.14","sectionType":"section","heading":"Insurance premiums for certain liabilities of board members [CA, s 199B ]","content":"### sec.14 Insurance premiums for certain liabilities of board members [CA, s 199B ]\n\nA distributor-retailer must not pay, or agree to pay, a premium for a contract insuring a person who is or has been a board member of the distributor-retailer against a liability (other than one for legal costs) arising out of—\nconduct involving a wilful breach of duty to the distributor-retailer; or\na contravention of section 8 or 9 .\nThis section applies to a premium whether it is paid directly or through an interposed entity.\n(sec.14-ssec.1) A distributor-retailer must not pay, or agree to pay, a premium for a contract insuring a person who is or has been a board member of the distributor-retailer against a liability (other than one for legal costs) arising out of— conduct involving a wilful breach of duty to the distributor-retailer; or a contravention of section 8 or 9 .\n(sec.14-ssec.2) This section applies to a premium whether it is paid directly or through an interposed entity.\n- (a) conduct involving a wilful breach of duty to the distributor-retailer; or\n- (b) a contravention of section 8 or 9 .","sortOrder":17},{"sectionNumber":"sec.15","sectionType":"section","heading":"Effect of div 2 [CA, s 199C ]","content":"### sec.15 Effect of div 2 [CA, s 199C ]\n\nThis division does not authorise anything that would otherwise be unlawful.\nAnything that purports to indemnify or insure a person against a liability, or exempt them from a liability, is void to the extent that it contravenes this division.\n(sec.15-ssec.1) This division does not authorise anything that would otherwise be unlawful.\n(sec.15-ssec.2) Anything that purports to indemnify or insure a person against a liability, or exempt them from a liability, is void to the extent that it contravenes this division.","sortOrder":18},{"sectionNumber":"pt.2-div.3","sectionType":"division","heading":"Appointment of board members","content":"## Appointment of board members","sortOrder":19},{"sectionNumber":"sec.16","sectionType":"section","heading":"Effectiveness of acts by board members [CA, s 201M ]","content":"### sec.16 Effectiveness of acts by board members [CA, s 201M ]\n\nAn act done by a board member of a distributor-retailer is effective even if their appointment, or the continuance of their appointment, is invalid because the distributor-retailer or board member did not comply with a provision of the Act or a participation agreement.\nHowever, an act done by a board member is not effective if, when the act is done, the members of the board know the board member’s appointment, or the continuance of the board member’s appointment, is invalid.\nSubsection (1) does not deal with the question of whether an effective act by a board member—\nbinds the distributor-retailer in its dealings with other people; or\nmakes the distributor-retailer liable to another person.\n(sec.16-ssec.1) An act done by a board member of a distributor-retailer is effective even if their appointment, or the continuance of their appointment, is invalid because the distributor-retailer or board member did not comply with a provision of the Act or a participation agreement.\n(sec.16-ssec.2) However, an act done by a board member is not effective if, when the act is done, the members of the board know the board member’s appointment, or the continuance of the board member’s appointment, is invalid.\n(sec.16-ssec.3) Subsection (1) does not deal with the question of whether an effective act by a board member— binds the distributor-retailer in its dealings with other people; or makes the distributor-retailer liable to another person.\n- (a) binds the distributor-retailer in its dealings with other people; or\n- (b) makes the distributor-retailer liable to another person.","sortOrder":20},{"sectionNumber":"pt.2-div.4","sectionType":"division","heading":"Access to distributor-retailer’s books and records","content":"## Access to distributor-retailer’s books and records","sortOrder":21},{"sectionNumber":"sec.17","sectionType":"section","heading":"Access to distributor-retailer’s books and records","content":"### sec.17 Access to distributor-retailer’s books and records\n\nA board member of a distributor-retailer has a right of access to all of the distributor-retailer’s books and records, including financial records, at all reasonable times.","sortOrder":22},{"sectionNumber":"pt.3","sectionType":"part","heading":"Assumptions people dealing with distributor-retailers are entitled to make","content":"# Assumptions people dealing with distributor-retailers are entitled to make","sortOrder":23},{"sectionNumber":"sec.18","sectionType":"section","heading":"Entitlement to make assumptions [CA, ss 128 and 129 ]","content":"### sec.18 Entitlement to make assumptions [CA, ss 128 and 129 ]\n\nA person is entitled to make the following assumptions (the assumptions ) relating to dealings with a distributor-retailer—\nthe distributor-retailer’s participation agreement and any provisions of the Act that apply to the distributor-retailer relating to the agreement have been complied with;\nthat a person who appears, from information provided by the distributor-retailer that is available to the public, to be a board member or an officer of the distributor-retailer—\nhas been duly appointed; and\nhas authority to perform the functions and exercise the powers of a board member or an officer, under the Act , relating to the distributor-retailer;\nthat a person who is held out by the distributor-retailer to be an officer or agent of the distributor-retailer—\nhas been duly appointed; and\nhas authority to perform the functions and exercise the powers customarily performed or exercised by that kind of officer or agent of a company conducting a business similar to that conducted by the distributor-retailer;\nthat the board members and agents of the distributor-retailer properly perform their duties to the distributor-retailer;\nthat a document has been duly executed by the distributor-retailer if the document appears to have been signed under section 52 of the Act ;\nthat an officer or agent of the distributor-retailer who has authority to issue a document or a certified copy of a document on its behalf also has authority to warrant that the document is genuine or is a true copy.\nHowever, a person is not entitled to make an assumption if at the time of the dealings they knew or suspected that the assumption was incorrect.\nThe distributor-retailer is not entitled to assert in proceedings in relation to the dealings that any of the assumptions are incorrect.\nThe assumptions may be made even if a board member or agent of the distributor-retailer acts fraudulently, or forges a document, in connection with the dealings.\n(sec.18-ssec.1) A person is entitled to make the following assumptions (the assumptions ) relating to dealings with a distributor-retailer— the distributor-retailer’s participation agreement and any provisions of the Act that apply to the distributor-retailer relating to the agreement have been complied with; that a person who appears, from information provided by the distributor-retailer that is available to the public, to be a board member or an officer of the distributor-retailer— has been duly appointed; and has authority to perform the functions and exercise the powers of a board member or an officer, under the Act , relating to the distributor-retailer; that a person who is held out by the distributor-retailer to be an officer or agent of the distributor-retailer— has been duly appointed; and has authority to perform the functions and exercise the powers customarily performed or exercised by that kind of officer or agent of a company conducting a business similar to that conducted by the distributor-retailer; that the board members and agents of the distributor-retailer properly perform their duties to the distributor-retailer; that a document has been duly executed by the distributor-retailer if the document appears to have been signed under section 52 of the Act ; that an officer or agent of the distributor-retailer who has authority to issue a document or a certified copy of a document on its behalf also has authority to warrant that the document is genuine or is a true copy.\n(sec.18-ssec.2) However, a person is not entitled to make an assumption if at the time of the dealings they knew or suspected that the assumption was incorrect.\n(sec.18-ssec.3) The distributor-retailer is not entitled to assert in proceedings in relation to the dealings that any of the assumptions are incorrect.\n(sec.18-ssec.4) The assumptions may be made even if a board member or agent of the distributor-retailer acts fraudulently, or forges a document, in connection with the dealings.\n- (a) the distributor-retailer’s participation agreement and any provisions of the Act that apply to the distributor-retailer relating to the agreement have been complied with;\n- (b) that a person who appears, from information provided by the distributor-retailer that is available to the public, to be a board member or an officer of the distributor-retailer— (i) has been duly appointed; and (ii) has authority to perform the functions and exercise the powers of a board member or an officer, under the Act , relating to the distributor-retailer;\n- (i) has been duly appointed; and\n- (ii) has authority to perform the functions and exercise the powers of a board member or an officer, under the Act , relating to the distributor-retailer;\n- (c) that a person who is held out by the distributor-retailer to be an officer or agent of the distributor-retailer— (i) has been duly appointed; and (ii) has authority to perform the functions and exercise the powers customarily performed or exercised by that kind of officer or agent of a company conducting a business similar to that conducted by the distributor-retailer;\n- (i) has been duly appointed; and\n- (ii) has authority to perform the functions and exercise the powers customarily performed or exercised by that kind of officer or agent of a company conducting a business similar to that conducted by the distributor-retailer;\n- (d) that the board members and agents of the distributor-retailer properly perform their duties to the distributor-retailer;\n- (e) that a document has been duly executed by the distributor-retailer if the document appears to have been signed under section 52 of the Act ;\n- (f) that an officer or agent of the distributor-retailer who has authority to issue a document or a certified copy of a document on its behalf also has authority to warrant that the document is genuine or is a true copy.\n- (i) has been duly appointed; and\n- (ii) has authority to perform the functions and exercise the powers of a board member or an officer, under the Act , relating to the distributor-retailer;\n- (i) has been duly appointed; and\n- (ii) has authority to perform the functions and exercise the powers customarily performed or exercised by that kind of officer or agent of a company conducting a business similar to that conducted by the distributor-retailer;","sortOrder":24},{"sectionNumber":"pt.4","sectionType":"part","heading":"Contravention and compensation","content":"# Contravention and compensation","sortOrder":25},{"sectionNumber":"sec.19","sectionType":"section","heading":"Declaration of contravention [CA, s 1317E ]","content":"### sec.19 Declaration of contravention [CA, s 1317E ]\n\nAny of the following may apply to the Supreme Court for a declaration (a declaration of contravention ) that a board member of a distributor-retailer has contravened section 6 , 7 , 8 or 9 —\na distributor-retailer;\na participating local government;\nthe State.\nIf the court is satisfied a board member of a distributor-retailer has contravened section 6 , 7 , 8 or 9 , it must make a declaration of contravention.\nA declaration of contravention must state the following—\nthe board member who contravened section 6 , 7 , 8 or 9 ;\nthe conduct that constituted the contravention;\nthe provision that was contravened.\n(sec.19-ssec.1) Any of the following may apply to the Supreme Court for a declaration (a declaration of contravention ) that a board member of a distributor-retailer has contravened section 6 , 7 , 8 or 9 — a distributor-retailer; a participating local government; the State.\n(sec.19-ssec.2) If the court is satisfied a board member of a distributor-retailer has contravened section 6 , 7 , 8 or 9 , it must make a declaration of contravention.\n(sec.19-ssec.3) A declaration of contravention must state the following— the board member who contravened section 6 , 7 , 8 or 9 ; the conduct that constituted the contravention; the provision that was contravened.\n- (a) a distributor-retailer;\n- (b) a participating local government;\n- (c) the State.\n- (a) the board member who contravened section 6 , 7 , 8 or 9 ;\n- (b) the conduct that constituted the contravention;\n- (c) the provision that was contravened.","sortOrder":26},{"sectionNumber":"sec.20","sectionType":"section","heading":"Declaration of contravention is conclusive evidence [CA, s 1317F ]","content":"### sec.20 Declaration of contravention is conclusive evidence [CA, s 1317F ]\n\nA declaration of contravention is conclusive evidence of the matters referred to in section 20 (3) .","sortOrder":27},{"sectionNumber":"sec.21","sectionType":"section","heading":"Compensation orders [CA, s 1317H ]","content":"### sec.21 Compensation orders [CA, s 1317H ]\n\nAny of the following may apply to the Supreme Court for an order (a compensation order ) requiring a board member of a distributor-retailer to pay the applicant or another person an amount as compensation for damage suffered by the applicant or the other person because the board member has contravened section 6 , 7 , 8 or 9 —\nthe distributor-retailer;\na participating local government;\nthe State.\nAn application for a compensation order may be made whether or not a declaration of contravention has been made for the matter the subject of the application.\nThe court may order the board member to pay to the applicant or other person, as compensation, an amount, decided by the court, if the court is satisfied—\nthe board member has contravened section 6 , 7 , 8 or 9 ; and\nthe applicant or other person has suffered damage because of the contravention.\nThe order must state the amount of the compensation.\nThe court may relieve the board member either wholly or partly from paying the compensation if the court is satisfied—\nthe board member acted honestly; and\nhaving regard to all the circumstances of the contravention, the board member ought fairly to be excused for the contravention.\nA compensation order may be enforced as if it were a judgment of the court.\n(sec.21-ssec.1) Any of the following may apply to the Supreme Court for an order (a compensation order ) requiring a board member of a distributor-retailer to pay the applicant or another person an amount as compensation for damage suffered by the applicant or the other person because the board member has contravened section 6 , 7 , 8 or 9 — the distributor-retailer; a participating local government; the State.\n(sec.21-ssec.2) An application for a compensation order may be made whether or not a declaration of contravention has been made for the matter the subject of the application.\n(sec.21-ssec.3) The court may order the board member to pay to the applicant or other person, as compensation, an amount, decided by the court, if the court is satisfied— the board member has contravened section 6 , 7 , 8 or 9 ; and the applicant or other person has suffered damage because of the contravention.\n(sec.21-ssec.4) The order must state the amount of the compensation.\n(sec.21-ssec.5) The court may relieve the board member either wholly or partly from paying the compensation if the court is satisfied— the board member acted honestly; and having regard to all the circumstances of the contravention, the board member ought fairly to be excused for the contravention.\n(sec.21-ssec.6) A compensation order may be enforced as if it were a judgment of the court.\n- (a) the distributor-retailer;\n- (b) a participating local government;\n- (c) the State.\n- (a) the board member has contravened section 6 , 7 , 8 or 9 ; and\n- (b) the applicant or other person has suffered damage because of the contravention.\n- (a) the board member acted honestly; and\n- (b) having regard to all the circumstances of the contravention, the board member ought fairly to be excused for the contravention.","sortOrder":28},{"sectionNumber":"sec.22","sectionType":"section","heading":"Time limit for application for a declaration or order [CA, s 1317K ]","content":"### sec.22 Time limit for application for a declaration or order [CA, s 1317K ]\n\nA proceeding for a declaration of contravention or a compensation order may be commenced no later than 6 years after the day of the contravention.","sortOrder":29},{"sectionNumber":"sec.23","sectionType":"section","heading":"Repeal","content":"### sec.23 Repeal\n\nThe South-East Queensland Water (Distribution and Retail Restructuring) Regulation 2010, SL No. 141 is repealed.","sortOrder":30}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"The regulation appears tightly focused on its original purpose of applying corporate governance standards to SEQ water distributor-retailers. It replaces the 2010 version (section 23) but maintains the same essential structure and scope—governing board conduct, third-party protections, and compensation mechanisms. No significant scope creep is evident."},"complexity_factors":["Extensive cross-referencing to the federal Corporations Act (each section notes its CA equivalent in square brackets)","Nested conditional logic in section 5 (business judgment rule with 4 cumulative requirements plus a rebuttable presumption)","Multiple overlapping duties (civil vs criminal standards for similar conduct in sections 6-9)","Defined terms rely on external legislation ('the Act', 'participation agreement') not fully reproduced here","Complex indemnity restrictions with multiple exceptions (section 13 has 6 subsections with carve-outs for legal costs)","Assumptions framework in Part 3 creates legal fictions that operate even in cases of fraud"],"plain_english_summary":"This regulation applies corporate governance rules to water utilities in South-East Queensland called 'distributor-retailers' (these are government-owned businesses that distribute water and sewerage services to households and businesses).\n\n**What it does:**\n- **Imports corporate law standards**: It copies key duties from the federal Corporations Act and applies them to board members and senior officers of these water utilities. This includes:\n  - **Duty of care and diligence**: They must act with the care a reasonable person would use (section 5)\n  - **Good faith**: They must act honestly and for proper purposes (section 6)\n  - **No misuse of position**: They can't use their role to benefit themselves or harm the utility (section 7)\n  - **No misuse of information**: They can't use confidential info for personal gain (section 8)\n  - **Criminal penalties**: Serious dishonesty can attract fines up to 20 penalty units (section 9)\n\n- **Protects third parties**: People dealing with these water utilities (like contractors or customers) can assume the board members are properly appointed and authorised, even if there's been a technical problem with their appointment (Part 3).\n\n- **Compensation rights**: If board members breach their duties, the utility, local government, or State can sue them for compensation (Part 4).\n\n- **Restricts insurance**: The utilities can't take out insurance to protect board members against deliberate wrongdoing or criminal conduct (sections 13-14).\n\n**Who it affects:**\n- Board members and senior officers of SEQ water distributor-retailers (like Unitywater, Queensland Urban Utilities, etc.)\n- Local governments that own shares in these utilities\n- Customers and businesses dealing with these utilities\n\n**Why it matters:**\nBefore this regulation, it wasn't clear if federal corporate law applied to these government-owned water businesses. This creates clear accountability standards, protects the public interest in essential water services, and ensures directors can be held personally liable for serious misconduct—similar to private company directors."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"issue_detection":{"absurdities":[{"type":"circular_definition","section":"sec.20","severity":"high","reasoning":"Section 20 contains a self-referential error: it purports to make a declaration of contravention conclusive evidence of matters in 'section 20(3)', but section 20 consists of only a single subsection. The intended cross-reference is almost certainly to section 19(3), which sets out the required contents of a declaration of contravention (identity of contravener, conduct, and provision contravened). As drafted, the section either refers to a non-existent subsection of itself or creates a circular loop where the declaration is conclusive evidence of matters defined nowhere in section 20.","confidence":0.95,"description":"Section 20 is titled 'Declaration of contravention is conclusive evidence' and states that a declaration of contravention is conclusive evidence of the matters referred to in 'section 20(3)'. However, section 20 has no subsection (3). The declaration of contravention and its required contents are defined in section 19(3), not section 20(3)."},{"type":"other","section":"sec.10","severity":"high","reasoning":"Section 10(2) carves out an exception for 'section 6(3), (4) and (5)' but section 6 as enacted has no such subsections. This appears to be a drafting error where the equivalent provisions of the Corporations Act (s 181) have subsections that were not replicated in this regulation. The exception therefore refers to provisions that do not exist, rendering section 10(2) either inoperative or meaningless as drafted.","confidence":0.92,"description":"Section 10 refers to 'section 6(3), (4) and (5)' in its exception clause, but section 6 contains only two subsections: (a) and (b) as a single operative rule. There are no subsections (3), (4) or (5) in section 6."},{"type":"other","section":"sec.3 (definition of 'compensation order') and sec.22","severity":"medium","reasoning":"Section 3 defines 'compensation order' by reference to 'section 22(1)'. Section 22 deals solely with time limits for applications and has no subsections at all. The compensation order is established in section 21(1). This is a cross-referencing error that means the defined term technically points to a non-existent provision, potentially creating interpretive uncertainty about what a 'compensation order' is.","confidence":0.9,"description":"The definition of 'compensation order' in section 3 cross-references 'section 22(1)', but section 22 has no subsection (1) — it is a single unsubdivided provision dealing with time limits. The compensation order is actually defined and created by section 21(1)."},{"type":"other","section":"sec.3 (definition of 'declaration of contravention') and sec.20","severity":"medium","reasoning":"Section 3 defines 'declaration of contravention' by reference to 'section 20(1)'. Section 20 is a single sentence with no subsections. The declaration of contravention is created and named in section 19(1). This dual cross-referencing error means both key defined terms in section 3 point to wrong or non-existent provisions.","confidence":0.9,"description":"The definition of 'declaration of contravention' in section 3 cross-references 'section 20(1)', but section 20 has no subsection (1) — it is a single unsubdivided provision. The declaration of contravention is actually established by section 19(1)."},{"type":"self_contradicting","section":"sec.13(2) and sec.13(3)","severity":"low","reasoning":"The interplay between subsections (2), (3), and (4) of section 13 creates a convoluted structure: (2) prohibits indemnity for certain liabilities including compensation orders; (3) says (2) doesn't apply to legal costs (implying legal costs can be indemnified); (4) then prohibits indemnity for legal costs in proceedings where the person is found guilty or liable. This creates a conditional and partially circular framework where the permissibility of indemnifying legal costs cannot be determined until after the proceedings conclude, creating a catch-22 for any indemnity agreement entered into before proceedings are resolved.","confidence":0.72,"description":"Section 13(2) prohibits indemnification of a person for a 'liability for a compensation order', then section 13(3) states that subsection (2) 'does not apply to a liability for legal costs'. This creates a potential absurdity: read literally, a distributor-retailer is prohibited from indemnifying a board member against the cost of a compensation order but the carve-out for legal costs in subsection (3) could be read as permitting indemnification for legal costs even in proceedings that result in a compensation order, until subsection (4) partially retracts that permission."},{"type":"impossible_compliance","section":"sec.16(1) and sec.16(2)","severity":"low","reasoning":"A third party dealing with a distributor-retailer cannot know whether board members privately know about an invalid appointment. The protection in section 16(1) can be silently undermined by facts (board knowledge) entirely within the organisation's sphere, defeating the purpose of the provision which is to give confidence to outsiders dealing with the entity. However, this mirrors the equivalent Corporations Act provision and may be an intentional structural feature rather than a true drafting error.","confidence":0.6,"description":"Section 16(1) validates acts by board members with invalid appointments, but section 16(2) invalidates those acts if 'the members of the board know' the appointment is invalid. This creates an impossible compliance scenario: the section purports to protect third parties dealing with a distributor-retailer, but the carve-out applies based on the subjective knowledge of board members — a fact that third parties cannot assess or verify."},{"type":"self_contradicting","section":"sec.9(1)","severity":"low","reasoning":"The conjunctive structure of section 9(1) — requiring both the fault element (recklessness/intentional dishonesty) AND failure to meet the conduct standard — means that an intentionally dishonest board member who coincidentally acts in the entity's best interests for a proper purpose escapes criminal liability. While this mirrors CA s 184 and may be intentional, it creates a logical oddity where dishonesty alone is insufficient for an offence.","confidence":0.65,"description":"Section 9(1) requires both (a) recklessness or intentional dishonesty AND (b) failure to act in good faith or for a proper purpose. This means a board member who is intentionally dishonest but nonetheless acts in good faith in the best interests of the distributor-retailer and for a proper purpose commits no criminal offence — a logically strained combination."}],"contradictions":[{"severity":"high","section_a":"sec.19(1)","section_b":"sec.21(1)","confidence":0.88,"description":"Section 19 permits applications for declarations of contravention only against 'board members', while section 21 similarly limits compensation orders to 'board members'. However, sections 6, 7, 8 and 9 — the contraventions that trigger these remedies — impose duties on both 'board members' AND 'officers'. Officers who contravene these sections cannot be the subject of a declaration of contravention or compensation order under this regulation."},{"severity":"medium","section_a":"sec.14(1)","section_b":"sec.13(2)(b)","confidence":0.75,"description":"Section 13(2)(b) prohibits a distributor-retailer from indemnifying a board member against 'a liability for a compensation order'. Section 14 prohibits insurance premiums for liabilities arising from wilful breach of duty or contraventions of sections 8 or 9. However, section 14 is silent on insurance against compensation orders arising from contraventions of sections 6 and 7 (good faith and use of position), meaning insurance against compensation orders for those contraventions may be permissible even though direct indemnification is not — creating an inconsistent outcome depending on the funding mechanism used."},{"severity":"medium","section_a":"sec.18(3)","section_b":"sec.18(4)","confidence":0.7,"description":"Section 18(3) states the distributor-retailer 'is not entitled to assert in proceedings in relation to the dealings that any of the assumptions are incorrect.' Section 18(4) states 'the assumptions may be made even if a board member or agent of the distributor-retailer acts fraudulently, or forges a document'. Read together, these subsections mean the distributor-retailer cannot raise fraud by its own board member as a defence in dealings with third parties, potentially requiring the entity to be bound by transactions procured by its own board member's forgery — a result that appears to contradict general principles of fraud vitiating contracts and creates tension with the criminal offence provisions in section 9."},{"severity":"low","section_a":"sec.5(3)","section_b":"sec.6(1)","confidence":0.65,"description":"Section 5(3) provides a safe harbour for business judgments made in good faith for a proper purpose, satisfying the care and diligence duty. Section 6(1) independently requires board members to act in good faith in the distributor-retailer's best interests and for a proper purpose. The business judgment rule in section 5(3) explicitly applies only to section 5(1) (care and diligence) and does not extend to section 6. This means a board member who satisfies the safe harbour for care and diligence purposes under section 5(3) may still be liable under section 6 for the same act, creating overlapping and potentially inconsistent liability for the same conduct."}]},"summary":{"complexity_score":6,"scope_assessment":{"changed":false,"description":"The regulation stays squarely within its stated purpose: adapting Corporations Act governance standards for SEQ water distributor-retailers and creating a compensation mechanism. No provisions appear to extend beyond this scope. It is a focused technical instrument replacing its 2010 predecessor."},"complexity_factors":["Operates as a specialist overlay regulation that mirrors and adapts Corporations Act provisions for a non-corporate statutory context, requiring cross-referencing between two legislative regimes","Multiple interlocking duties with both civil and criminal dimensions, requiring understanding of when each applies","The 'business judgment rule' defence involves layered conditions and legal standards (good faith, rationality, materiality) drawn from corporate law","Restrictions on indemnities and insurance involve nuanced carve-outs (e.g. legal costs are treated differently from other liabilities)","Enforcement framework involves Supreme Court declarations of contravention that then operate as conclusive evidence in subsequent compensation proceedings — a two-stage legal process","The definition of 'officer' is broad and functional (covering people who significantly affect financial standing), creating uncertainty about who is caught","Multiple intersecting Acts referenced (Corporations Act, Financial Accountability Act, Statutory Bodies Financial Arrangements Act, Water Act, Water Supply Act, and the parent SEQ Water Act)"],"plain_english_summary":"## What This Law Does\n\nThis Queensland regulation governs how the boards and senior staff of **distributor-retailers** — the publicly owned water utilities that distribute and retail water in South-East Queensland (such as Unitywater and Urban Utilities) — must conduct themselves. It replaces an older 2010 regulation.\n\nBecause these water entities are **not standard companies** registered under national corporations law (the Corporations Act), they don't automatically get the governance rules that apply to company directors. This regulation fills that gap by importing equivalent rules and tailoring them to the water utility context.\n\n## Who Does This Affect?\n\n- **Board members and officers** (senior decision-makers) of SEQ water distributor-retailers — they face legal duties and potential criminal penalties\n- **The distributor-retailers themselves** — they are prohibited from shielding their board members from certain liabilities\n- **Businesses and individuals dealing with** these water utilities — they get legal protections when transacting with these entities\n- **Local governments and the State** — they can take legal action if board members behave badly\n\n## Key Rules\n\n### Duties on Board Members and Officers\nBoard members and senior staff must:\n- **Act with care and diligence** — like a reasonable person in the same role would (similar to company director duties)\n- **Act in good faith** and in the utility's best interests\n- **Not misuse their position or inside information** to gain personal advantages or harm the organisation\n\nBreaching these duties can lead to **civil liability** (being sued for compensation) or even **criminal charges** (fines up to 20 penalty units — approximately $2,869 in Queensland) if the conduct is dishonest or reckless.\n\n### Business Judgment Protection\nBoard members who make reasonable business decisions in good faith, without personal conflicts of interest, are **protected from liability** — they won't be second-guessed just because a decision turns out badly.\n\n### Restrictions on Protection From Consequences\nThe water utility **cannot** protect its board members from liability by:\n- Exempting them from being sued by the utility\n- Paying their legal costs if they lose a case or are found guilty of a crime\n- Taking out insurance to cover their dishonest or wilful wrongdoing\n\n### Rights When Dealing With the Utility\nIf you're doing business with one of these water utilities, you can reasonably **assume** that the people you deal with are properly authorised to act, and the utility cannot later deny this — even if fraud occurred behind the scenes (unless you knew something was wrong).\n\n### Enforcement\nThe Supreme Court can:\n- **Declare** that a board member breached their duties\n- **Order compensation** to be paid to the utility, local governments, or the State\n- **Excuse** a board member from paying compensation if they acted honestly and it's fair to do so\n\nLegal action must be started **within 6 years** of the breach."}},"importantCases":[],"_links":{"self":"/api/acts/south-east-queensland-water-distribution-and-retail-restructuring-regulation-2021","history":"/api/acts/south-east-queensland-water-distribution-and-retail-restructuring-regulation-2021/history","analysis":"/api/acts/south-east-queensland-water-distribution-and-retail-restructuring-regulation-2021/analysis","conflicts":"/api/acts/south-east-queensland-water-distribution-and-retail-restructuring-regulation-2021/conflicts","importantCases":"/api/acts/south-east-queensland-water-distribution-and-retail-restructuring-regulation-2021/important-cases","documents":"/api/acts/south-east-queensland-water-distribution-and-retail-restructuring-regulation-2021/documents"}}