# Civil liability of executive officers of bodies corporate

> act-s245AU — as in force on 2026-06-04 — C2026C00232 · Compilation No. 171 — https://www.legislation.gov.au/C2026C00232/latest/text

245AU Civil liability of executive officers of bodies corporate
          (1) An executive officer of a body corporate contravenes this
              subsection if:
                (a) the body contravenes (the sponsorship-related
                    contravention) a civil penalty provision in this Subdivision;
                    and
               (b) the officer knew that, or was reckless or negligent as to
                    whether, the sponsorship-related contravention would occur;
                    and
                (c) the officer was in a position to influence the conduct of the
                    body in relation to the sponsorship-related contravention; and
               (d) the officer failed to take all reasonable steps to prevent the
                    sponsorship-related contravention.
               Note:      Section 486ZF (which provides that a person’s state of mind does not
                          need to be proven in proceedings for a civil penalty order) does not
                          apply in relation to a contravention of this subsection.

               Civil penalty provision
          (2) An executive officer of a body corporate is liable to a civil penalty
              if the officer contravenes subsection (1).
               Civil penalty:           240 penalty units.










               Reasonable steps to prevent the contravention
          (3) In determining whether the executive officer of the body corporate
              failed to take all reasonable steps to prevent the
              sponsorship-related contravention by the body, a court must have
              regard to:
                (a) what action (if any) the officer took towards ensuring that the
                    body’s employees, agents and contractors had a reasonable
                    knowledge and understanding of the requirements to comply
                    with this Subdivision, insofar as those requirements affected
                    the employees, agents or contractors concerned; and
                (b) what action (if any) the officer took when he or she became
                    aware that the body was engaging in the sponsorship-related
                    contravention.
          (4) Subsection (3) does not limit subsection (1).

               Definitions
          (5) In this section:
               negligent: an executive officer of a body corporate is negligent as
               to whether a sponsorship-related contravention would occur if the
               officer’s conduct involves:
                 (a) such a great falling short of the standard of care that a
                      reasonable person would exercise in the circumstances; and
                 (b) such a high risk that the sponsorship-related contravention
                      would occur;
               that the conduct merits the imposition of a pecuniary penalty.
               reckless: an executive officer of a body corporate is reckless as to
               whether a sponsorship-related contravention would occur if:
                 (a) the officer is aware of a substantial risk that the
                     sponsorship-related contravention would occur; and
                 (b) having regard to the circumstances known to the officer, it is
                     unjustifiable to take the risk.