172Criminal liability of executive officers

172 Criminal liability of executive officers (1) An executive officer of a corporation commits an offence if— (a) the corporation commits a relevant offence; and (b) the officer was reckless about whether the relevant offence would be committed; and (c) the officer was in a position to influence the conduct of the corporation in relation to the commission of the relevant offence; and (d) the officer failed to take reasonable steps to prevent the commission of the relevant offence. Maximum penalty: The maximum penalty that may be imposed for the commission of the relevant offence by an individual. (2) In deciding whether the executive officer took (or failed to take) reasonable steps to prevent the commission of the relevant offence, a court must consider the following: (a) any action the officer took directed towards ensuring the following (to the extent that the action is relevant to the act or omission): (i) that the corporation arranges regular professional assessments of the corporation’s compliance with the provision to which the relevant offence relates;

(ii) that the corporation implements any appropriate recommendation arising from such an assessment; (iii) that the corporation’s employees, agents and contractors have a reasonable knowledge and understanding of the requirement to comply with the provision to which the relevant offence relates; (b) any action the officer took when the officer became aware that the relevant offence was, or might be, about to be committed. (3) Subsection (2) does not limit the matters the court may consider. (4) Subsection (1) does not apply if the corporation would have a defence to a prosecution for the relevant offence. Note The defendant has an evidential burden in relation to the matters mentioned in s (4) (see Criminal Code, s 58). (5) This section applies whether or not the corporation is prosecuted for, or convicted of, the relevant offence. (6) In this section: relevant offence means an offence against any of the following: (a) section 26 (1) (Supplying declared substances); (b) section 28 (Supplying declared substances on invalid supply authorities—recklessness); (c) section 29 (Supplying declared substances on invalid supply authorities—other offences); (d) section 30 (Cancellation etc of invalid supply authorities for declared substances); (e) section 34 (1), (2) or (3) (Discarding declared etc substances); (f) section 35 (1) (Obtaining certain declared substances); (g) section 36 (Possessing certain declared substances);

(h) section 37 (1) or (4) (Administering certain declared (i) section 38 (1) (Issuing purchase orders for declared substances); (j) section 40 (1) or (3) (Prescribing medicines); (k) section 41 (Issuing requisitions for medicines); (l) section 42 (Issuing standing orders for medicines); (m) section 43 (1) or (2) (Medicines for animals not to be prescribed etc for human use); (n) section 44 (Contravening authorisation conditions for regulated (o) section 45 (1) (Pretending to be authorised to deal with regulated substance); (p) section 55 (Registers—changes etc to entries); (q) section 59 (1) (Packaging of supplied regulated substances); (r) section 60 (1) (Labelling of supplied regulated substances); (s) section 61 (Storing declared substances); (t) section 64 (2) (False statements to obtain certain regulated substances etc); (u) section 65 (Falsely representing substance is regulated); (v) section 68 (Vending machines—use for supply of regulated (w) section 69 (Vending machines—use for supply of unscheduled medicines); (x) section 70 (Manufacture, supply and use of paints containing white lead); (y) section 71 (3) (Manufacture, supply and use of paints for certain purposes);