9Conduct by directors, employees and agents

9 Conduct by directors, employees and agents

(1) If, in a proceeding under this Act in respect of conduct engaged in by a body corporate, it is necessary to establish the state of mind of the body corporate in relation to particular conduct, it is sufficient to show: (a) that the conduct was engaged in by a director, employee or agent of the body corporate within the scope of his or her actual or apparent authority; and (b) that the director, employee or agent had the state of mind. (2) Conduct engaged in on behalf of a body corporate: (a) by a director, employee or agent of the body corporate within the scope of the person’s actual or apparent authority; or (b) by any other person at the direction or with the consent or agreement (whether express or implied) of a director, employee or agent of the body corporate, if the giving of the direction, consent or agreement is within the scope of the actual or apparent authority of the director, employee or agent; is taken, for the purposes of this Act, to have been engaged in also by the body corporate unless the body corporate establishes that the body corporate took reasonable precautions and exercised due diligence to avoid the conduct. (3) If, in a proceeding under this Act in respect of conduct engaged in by an individual, it is necessary to establish the state of mind of the individual, it is sufficient to show: (a) that the conduct was engaged in by an employee or agent of the person within the scope of his or her actual or apparent authority; and (b) that the employee or agent had the relevant state of mind. (4) Conduct engaged in on behalf of an individual: (a) by an employee or agent of the person within the scope of the actual or apparent authority of the employee or agent; or (b) by any other person at the direction or with the consent or agreement (whether express or implied) of an employee or agent of the individual, if the giving of the direction, consent or agreement is within the scope of the actual or apparent authority of the employee or agent; is taken, for the purposes of this Act, to have been engaged in also by that individual unless that individual establishes that he or she took reasonable precautions and exercised due diligence to avoid the conduct. (5) If: (a) an individual is convicted of an offence; and (b) the individual would not have been convicted of the offence if subsections (3) and (4) had not been enacted; the individual is not liable to be punished by imprisonment for that offence. (6) A reference in subsection (1) or (3) to the state of mind of a person includes a reference to: (a) the knowledge, intention, opinion, belief or purpose of the person; and (b) the person’s reasons for the intention, opinion, belief or purpose. (7) A reference in this section to a director of a body corporate includes a reference to a constituent member of a body corporate incorporated for a public purpose by a law of the Commonwealth, a State or a Territory. (8) A reference in this section to engaging in conduct includes a reference to failing or refusing to engage in conduct.