Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section has effect for the purposes of:
(a) proceedings to recover from a person a penalty payable under section 222AQA; or
(b) proceedings under section 222AQC against a person of the kind referred to in paragraph 222AQC(d).
(2) It is a defence if it is proved that, because of illness or for some other good reason, the person did not take part in the management of the company at any time, during the period referred to in subsection 222AQA(2), when the person was a director.
(3) It is also a defence if it is proved that:
(a) the person took all reasonable steps to ensure that the company complied with the agreement; or
(b) there were no such steps that the person could have taken.
(4) In subsection (3):
"reasonable" means reasonable having regard to:
(a) when, and for how long, the person was a director and took part in the management of the company; and
(b) all other relevant circumstances.
(5) If the person was a director of the company at the time when the agreement was made, he or she is not entitled to rely on a defence under subsection (2) or (3) unless it is also proved that, at that time, the person had reasonable grounds to expect, and did expect, that the company would comply with the agreement.