Several provisions deserve close attention. Directors should be aware that they may be removed from office for being absent from four consecutive Board meetings without the Board’s permission (Schedule 1 clause 7(g)). This is a relatively low threshold - half a year of missed meetings could trigger removal. Additionally, directors who fail to disclose a pecuniary interest as required under Schedule 2 clause 6 may be removed under clause 7(b) and also face a criminal penalty of up to 10 penalty units or 3 months imprisonment (Sch 2 cl 6(1)). The disclosure obligation is broad, covering any direct or indirect pecuniary interest in a matter being considered or about to be considered that may conflict with proper performance of duties. There is no de minimis exception.
The immunity provisions in s 35 are generous but all are conditioned on good faith. A CEO, employee, port company, board member, or authorised person must have acted in good faith to be protected. The liability then attaches to the Authority under s 35(3). However, the Authority itself is immune from actions for any act done or omitted in relation to any defect in equipment or facility provided for the operation or safety of vessels (s 35(4)), and for any act done or omitted in relation to any service provided for the operation or safety of vessels (s 35(5)). This means a person injured by defective safety equipment or a negligent safety service may have no recourse against the Authority at all.
Vessel owners should note that the Authority can recover costs of seizure and disposal from the owner even if the proceeds of sale are insufficient (s 38D(5)). There is no cap on this liability. The owner may also face daily penalties for continuing offences under s 38B(4) and s 38E(2) - up to 5 penalty units per day, which can accumulate quickly.
The Act gives the Authority broad power to make by-laws that are not statutory rules under the Rules Publication Act 1953 but are still subordinate legislation (s 42(4)). This means by-laws may not be subject to the same parliamentary scrutiny as statutory rules, yet they can create offences. The by-laws can adopt or incorporate future documents, standards, rules or codes (s 42(3)), so operators must monitor external documents that may be incorporated by reference.
The definition of vessel includes “any other prescribed craft, or any other craft of a prescribed class, used for recreational purposes” (s 3). This allows the regulations or by-laws to expand the scope of regulation to novel watercraft not captured by the National Law definition. The Authority’s jurisdiction under s 5 explicitly excludes vessels within the meaning of the National Law (except as delegated), but the definition of vessel for the Act’s purposes is broader, potentially capturing recreational craft not covered by the National Law.
Another trap: infringement notices under s 45 cannot relate to four or more offences. A single notice for three or fewer offences is permissible, but if an authorised person issues a notice for four or more, it may be invalid. Also, a person under 16 years cannot be served an infringement notice (s 45(1)), so enforcement against minors must proceed by other means.
The Act’s commencement depends on proclamation (s 2). Users should verify the actual commencement date. The transfer day under s 31 also depends on a Ministerial determination. Transitional provisions in Schedule 3 impose time limits: former regulations and by-laws continued only until 31 December 2000 (Sch 3 cl 8), and exemption certificates continued for up to two years (Sch 3 cl 9(3)). Licences and permits continued for 12 months (Sch 3 cl 10), pilot appointments for 6 months (Sch 3 cl 11). Those periods have long expired, but practitioners dealing with old certificates should check whether they have been renewed or replaced under the new regime.
Finally, the definition of unseaworthy for commercial vessels includes the absence of a current certificate of survey (s 38B(1)(c)). A commercial vessel without a certificate is automatically unseaworthy, regardless of its actual condition. For non-commercial vessels, unseaworthiness requires certification by a marine surveyor or naval architect (s 38B(1)(d)). This distinction means that the Authority can act more swiftly against commercial vessels without a survey certificate.