New South Wales Consolidated Acts
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WORKERS COMPENSATION ACT 1987 - SECT 175A
Recovery from directors of corporation evading payment of correct premium
175A Recovery from directors of corporation evading payment of correct premium
(1) If the Authority is entitled to recover an amount from a corporation under
section 175 (4) or (4AA) (even if the corporation has ceased to exist) and the
amount is not recoverable from the corporation, the Authority is entitled to
recover the amount from a person who was a culpable director of the
corporation at the relevant time.
(2) An amount is considered to be not
recoverable from a corporation if the Authority certifies that it will be
unable or unlikely to recover the amount from the corporation by reasonable
efforts at recovery, whether because the corporation is being wound up and is
unable to pay its debts, or otherwise.
(3) A person is a culpable director of
a corporation at the relevant time if the person was a director of the
corporation at the time that the false or misleading information to which the
entitlement of the Authority relates was provided to the insurer concerned
(whether or not the corporation has been proceeded against or convicted of an
offence in respect of the provision of that information).
(4) A person is not
a culpable director of a corporation if the person establishes that--
person did not know that the information provided by the corporation was false
or misleading in a material particular, or
(b) the person was not in a
position to influence the conduct of the corporation in relation to the
provision of false or misleading information, or
(c) the person, being in
such a position, used all due diligence to prevent the provision by the
corporation of false or misleading information.
(5) If there is a right of
recovery against more than one director of a corporation in respect of the
same amount, the right is a right against all those directors jointly and
(6) A director from whom an amount is recovered under this section
is entitled to recover the amount from the corporation.
(7) This section does
not apply to an entitlement of the Authority that arises from the provision of
false or misleading information by a corporation before the commencement of
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