ENVIRONMENT PROTECTION ACT 1997 - SECT 91Q Director of body corporate that disposed of land

ENVIRONMENT PROTECTION ACT 1997 - SECT 91Q

    (1)     The Supreme Court may order a person to comply with an assessment order or remediation order at the person's own expense if—

        (a)     the person was a director of, or a person concerned in the management of, a body corporate that transferred land within 2 years before the court's order is made; and

        (b)     the transferee has failed to comply with the assessment order or remediation order in relation to the land.

    (2)     The person must comply with the assessment order or remediation order, subject to any modification by the Supreme Court.

    (3)     The Supreme Court may make an order under this section only if satisfied, on an application by the authority that—

        (a)     the person was a director of, or a person concerned in the management of, the body corporate at the time of the transfer of the land or at the time when the assessment order or remediation order was made in relation to the transferee; and

        (b)     there is reason to believe that the body corporate transferred the land as part of a scheme to avoid having itself to carry out assessment or remediation of the land (whether or not an assessment order or remediation order had been made in relation to the body corporate).

    (4)     There is reason for belief of the kind mentioned in subsection (3) (b) if, at the time or times when the body corporate entered into 1 or more transactions, or a substantial part of the transactions, for the transfer of the land—

        (a)     there was reason to believe that the land was contaminated; and

        (b)     the transferee was another body corporate that was related to the first body corporate (within the meaning of the Corporations Act

); and

        (c)     the first body corporate had reason to believe that the transferee was unable to pay its debts or would, if it took steps to remediate the land (to the extent that a reasonable person would have expected, at the time or times, would be necessary), become unable to pay its debts.

    (5)     The Supreme Court must not make an order under this section if the person against whom the order would be made satisfies the court that—

        (a)     the person exercised due diligence to prevent the body corporate from avoiding compliance with the assessment order or remediation order; or

        (b)     the person could not reasonably have been expected to be aware of a scheme to avoid compliance with the assessment order or remediation order; or

        (c)     the person was not in a position to influence the conduct of the body corporate in relation to that scheme.

    (6)     The fact that the relevant order was partially complied with by the transferee does not exclude the possibility that there is reason to form the belief mentioned in subsection (3).