169ALiability of directors etc for offences by corporation—offences attracting executive liability generally

169A Liability of directors etc for offences by corporation—offences attracting executive liability generally

169A Liability of directors etc for offences by corporation—offences attracting executive liability generally

(1) For the purposes of this section, an executive liability offence is an offence against any of the following provisions of this Act that is committed by a corporation—

(a) section 47 (1),

(b) section 48 (2),

(c) section 86 (3),

(d) section 91B,

(e) section 97,

(f) section 112,

(g) section 129,

(h) section 136,

(i) section 137,

(j) section 139,

(k) section 140,

(l) section 144AA (1),

(m) section 153A,

(n) section 153B (2),

(o) section 153D,

(p) section 153E,

(q) section 153F,

(r) section 155,

(s) section 156,

(t) section 167 (4),

(u) section 167A(1),

(u1) section 170E(1), (2) or (3),

(u2) section 170F(1), (2) or (3),

(u3) section 170H(1) or (3),

(v) section 296F(7),

(w) section 296L(1).

(2) A person commits an offence against this section if—

(a) a corporation commits an executive liability offence, and

(b) the person is—

(i) a director of the corporation, or

(ii) an individual who is involved in the management of the corporation and who is in a position to influence the conduct of the corporation in relation to the commission of the executive liability offence, and

(c) the person—

(i) knows or ought reasonably to know that the executive liability offence (or an offence of the same type) would be or is being committed, and

(ii) fails to take all reasonable steps to prevent or stop the commission of that offence.

Maximum penalty—

(a) for an offence committed against section 170E(1), (2) or (3)—an amount equal to half the maximum penalty for the offence if committed by a local council, or

(b) otherwise—the maximum penalty for the executive liability offence if committed by an individual.

(3) The prosecution bears the legal burden of proving the elements of the offence against this section.

(4) The offence against this section can only be prosecuted by a person who can bring a prosecution for the executive liability offence.

(5) This section does not affect the liability of the corporation for the executive liability offence, and applies whether or not the corporation is prosecuted for, or convicted of, the executive liability offence.

(6) This section does not affect the application of any other law relating to the criminal liability of any persons (whether or not directors or other managers of the corporation) who are accessories to the commission of the executive liability offence or are otherwise concerned in, or party to, the commission of the executive liability offence.

(7) In this section—

director has the same meaning it has in the Corporations Act 2001 of the Commonwealth.

reasonable steps, in relation to the commission of an executive liability offence, includes, but is not limited to, such action (if any) of the following kinds as is reasonable in all the circumstances—

(a) action towards—

(i) assessing the corporation’s compliance with the provision creating the executive liability offence, and

(ii) ensuring that the corporation arranged regular professional assessments of its compliance with the provision,

(b) action towards ensuring that the corporation’s employees, agents and contractors are provided with information, training, instruction and supervision appropriate to them to enable them to comply with the provision creating the executive liability offence so far as the provision is relevant to them,

(c) action towards ensuring that—

(i) the plant, equipment and other resources, and

(ii) the structures, work systems and other processes,

relevant to compliance with the provision creating the executive liability offence are appropriate in all the circumstances,

(d) action towards creating and maintaining a corporate culture that does not direct, encourage, tolerate or lead to non-compliance with the provision creating the executive liability offence.

s 169A: Ins 2012 No 97, Sch 1.34 [35]. Am 2022 No 3, Sch 5[46] [47]; 2024 No 10, Sch 1[4]; 2025 No 1, Sch 1[2] [3].