Under the proposed Act, it is an offence to cause a building product to be used in a building in contravention of a building product use ban. A person causes a building product to be used if the person does the building work, or in any other circumstances prescribed by regulations.
It is also an offence, in trade or commerce, to represent that a building product is suitable for use in a building if that use would contravene a building product use ban.
The maximum penalty for these offences in the case of corporation is currently $1.1 million, and a further $110,000 for each day the offence continues.
In any other case, the maximum penalty is currently $220,000 or 2 years imprisonment or both, and a further $44,000 for each day the offence continues.
These offences are executive liability offences, which means that if the corporation commits an offence:
- a director of the corporation, or
- a person involved in the management of the corporation and who is in a position to influence the conduct of the corporation in relation to the offence,
also commits an offence if the person knows or ought reasonably to know that the offence would be or is being committed and the person fails to take all reasonable steps to prevent or stop the commission of that offence.
The maximum penalty for committing an executive liability offence is currently $22,000.
The proposed Act also creates general liability for directors or persons concerned with the management of the corporation where a corporation commits an offence and the person knowingly authorised or permitted the contravention, and a specific offence where such a person aids, abets, counsels, procures, induces, or conspires to effect the commission of an offence committed by a corporation.