(a) the person was a
director of, or a person concerned in the management of, a body corporate that
transferred land, to which the management order related, within the 2 years
before the Court's order is made, and
(b) the person to whom the land was
transferred (the
"transferee" ) has failed to comply with the management order.
(2) A person
who is subject to an order of the Court under this section must comply with
the management order, subject to any modification by the Court.
(3) The Court
may make an order under this section only if it is satisfied, on an
application by the EPA that--
(a) the person was a director of, or person
concerned in the management of, the body corporate at the time of the transfer
of the land or at the time when the management order was made in respect of
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
management of the land (whether or not a management order had been made in
respect of the body corporate).
(4) There is reason for such a belief if, at
the time or times when the body corporate entered into one or more
transactions, or a substantial portion 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 2001 of the
Commonwealth), 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 with
respect to the management of contamination of 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 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 had no knowledge, actual, imputed or
constructive, of the scheme or any element of the scheme, or
(b) the person
was not in a position to influence the conduct of the first body corporate in
relation to that scheme, or
(c) the person, if in such a position, used all
due diligence to prevent the pursuit of the scheme by the first body
corporate.
(6) The mere 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 referred to in subsection (3).
