Western Australian Current Acts

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CONTAMINATED SITES ACT 2003 - SECT 28

28 .         Insolvent bodies corporate — responsibility for remediation

        (1)         This section applies to and in respect of a body corporate which is a person responsible for remediation of a site under section 25, 26 or 27, or under this section and —

            (a)         which is insolvent; or

            (b)         in respect of which the committee has decided that the body corporate would become insolvent if it took action to remediate the site.

        (2)         Subject to subsections (3) and (4) —

            (a)         each person who was a director of an insolvent body corporate; and

            (b)         each body corporate that was a related body corporate, for the purposes of the Corporations Act 2001 of the Commonwealth, of an insolvent body corporate,

                at the relevant time, may become a person responsible for the remediation if so decided by the committee, to the extent as is decided by the committee, after taking into account the relevant circumstances and any matters prescribed for the purposes of this section.

        (3)         The persons referred to in paragraphs (a) and (b) of subsection (2) may not, as a result of the operation of this section, be jointly responsible for remediation of the site to a greater extent than the insolvent body corporate was responsible for remediation of the site.

        (4)         Subsection (2) does not apply in respect of a person referred to in paragraph (a) or (b) of that subsection unless the committee has decided that —

            (a)         the insolvency, or lack of solvency, of the insolvent body corporate is a result of deliberate conduct engaged in with, the committee has decided, the probable intent of avoiding responsibility for remediation under this Act; and

            (b)         the person —

                  (i)         engaged in the conduct or knew, or had reasonable grounds to suspect, that the conduct was being engaged in;

                  (ii)         intended to avoid responsibility for remediation under this Act or knew, had reasonable grounds to suspect, or did not inquire as to whether, the conduct was being engaged in with the intent of avoiding responsibility for remediation under this Act; and

                  (iii)         was in a position to influence the conduct.

        (5)         Where it is necessary to establish the state of mind of a body corporate in relation to particular conduct under subsection (4), it is sufficient that —

            (a)         the conduct was engaged in by a director, employee or agent of the body corporate within the scope of his or her actual or apparent authority; and

            (b)         the director, employee or agent had the relevant state of mind.

        (6)         A decision of the committee under subsection (1), (2) or (4) is a decision as to responsibility for remediation to which Part 3 Division 3 applies.

        (7)         In this section —

        director has the same meaning as in the Corporations Act 2001 of the Commonwealth;

        engage in conduct includes failing or refusing to engage in conduct;

        insolvent body corporate means a body corporate referred to in subsection (1);

        relevant time means, in relation to a person who was responsible for remediation under —

            (a)         section 25, when the act that caused, or contributed to, the contamination occurred;

            (b)         section 26, when the change of use occurred;

            (c)         section 27(1) or (2), when the person became an owner of the site; and

            (d)         section 27(2a), when the person became an owner of the source site of the relevant affected site;

        state of mind of a person includes —

            (a)         the knowledge, intention, opinion, belief or purpose of the person; and

            (b)         the person’s reasons for the intention, opinion, belief or purpose.

        [Section 28 amended: No. 40 of 2005 s. 7.]



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