192NRelevant connection to high risk entity

192N Relevant connection to high risk entity (1) This section applies to the making of a decision by the relevant decision-maker as to whether a person has a relevant connection to a high risk entity. (2) In making the decision, the relevant decision-maker must consider the extent to which the person is, or was at any time within the preceding 3 years, in a position to influence the high risk entity's conduct in relation to: (a) the way in which the high risk entity complies with a compliance notice; or (b) the extent to which the high risk entity complies with a compliance notice. (3) In making the decision, the relevant decision-maker must also consider the extent of any financial interest held by the person in the high risk entity, including any financial interest held at any time within the preceding 3 years. (4) In making the decision, the relevant decision-maker must also consider the following, to the extent the relevant decision-maker considers relevant: (a) the extent of the person's control of the high risk entity; (b) whether the person is, or was at any time within the preceding 3 years, an executive officer of: (i) the high risk entity; or (ii) a holding entity or other body corporate with a financial interest in the high risk entity; (c) any agreements or other transactions the person has, or had at any time within the preceding 3 years, with the high risk entity or with a holding entity or other body corporate mentioned in paragraph (b)(ii) other than an agreement for access to land under an enactment prescribed by regulation; (d) the extent of the dealings the person has, or had at any time within the preceding 3 years, with the high risk entity or with a holding entity or other body corporate mentioned in paragraph (b)(ii); Environment Protection Act 2019 181 (e) the extent of the person's cooperation and compliance with an information requirement relevant to the relevant decision- maker making the decision. (5) A reference in subsection (2) to a person being in a position to influence a high risk entity's conduct includes a person being in that position whether: (a) by acting alone or jointly with an associated entity of the high risk entity; or (b) by giving a direction or approval, by making funding available or in another way. (6) The matters the relevant decision-maker may consider for subsection (4)(d) include the following: (a) how arm's length the dealings were; (b) whether any transactions were made at market value or not; (c) whether the dealings were on an independent, commercial footing; (d) whether the dealings were for providing professional advice; (e) whether the dealings were for providing finance, including any mortgage, charge or other security in relation to the provision of finance. (7) Subsections (2) to (6) do not limit the matters the relevant decision- maker may consider in deciding whether a person has a relevant connection to a high risk entity. (8) The period of 3 years mentioned in this section: (a) refers to a period ending immediately before the decision to which this section applies is made; and (9) In this section: control: (a) in relation to a high risk entity (other than an Aboriginal and Torres Strait Islander corporation) – see section 50AA of the Environment Protection Act 2019 182 (b) in relation to a high risk entity that is an Aboriginal and Torres Strait Islander corporation – see section 689-25 of the CATSI Act. financial interest, in a high risk entity, means a direct or indirect legal or equitable interest in: (a) shares in the high risk entity; or (b) a mortgage, charge or other security given by the high risk entity; or (c) income or revenue of the high risk entity. information requirement means: (a) a requirement under section 163, 172 or 175 or under another provision of this Act under which information may be required to be provided; or (b) a provision of a prescribed Act under which information may be required to be provided. Subdivision 2 Redirection to related persons by issue of compliance notices