Cooper Grace Ward is proud to announce prestigious international legal research firm Chambers & Partners has listed lead litigation and dispute resolution partner Rocco Russo and his team in its ...
Officers, financiers, shareholders and other related persons can now be personally liable for company breaches under the Environmental Protection Act 1994 (Qld) (‘Act’).
On 22 April 2016, the Queensland Government passed the Environmental Protection (Chain of Responsibility) Amendment Act 2016 to drastically broaden the application of the Act. These amendments have been triggered as a consequence of concerns that taxpayers may end up paying for the costs of environmental rectification works at the Queensland Nickel refinery near Townsville as a result of the operator of the refinery being placed in administration.
Before the amendments, the Department of Environment and Heritage Protection (‘Department’) could generally only issue an environmental protection order to companies or individuals who caused environmental harm or failed to comply with environmental conditions imposed by the Department under the Act.
Under the recent amendments, the Department can now issue an environmental protection order to related bodies corporate, executive officers, secured parties, mortgagees, financiers, shareholders, and ‘related persons’, such as holding companies and landowners.
This means that parties that had no involvement in causing the environmental harm or failing to comply with environmental obligations can now be required to comply with environmental protection orders. The costs in complying with these orders, such as rehabilitating affected land, can be significant.
As the Department can consider matters arising prior to 20 April 2016 in determining whether a person constitutes a related person, people who may be at risk should consider whether they have sufficient contractual protection under existing insurances, leases, sale contracts and joint ventures if environmental harm is caused.
At risk parties can minimise their exposure through appropriately drafted obligations in leases and other contractual arrangements.
Please contact David Grace or Leanne O’Neill if you would like further information or advice.
This publication is for information only and is not legal advice. You should obtain advice that is specific to your circumstances and not rely on this publication as legal advice. If there are any issues you would like us to advise you on arising from this publication, please let us know.
Subscribe to our interest lists to receive legal alerts, articles, event invitations and offers.
Cooper Grace Ward acknowledges and pays respect to the past, present and future Traditional Custodians and Elders of this nation and the continuation of cultural, spiritual and educational practices of Aboriginal and Torres Strait Islander peoples.
Fast, accurate and flexible entities including companies, self-managed superannuation funds and trusts.