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Contents (2009 - 7)
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Associations Incorporation Act 2009 No 7
Current version for 1 September 2016 to date (accessed 26 June 2017 at 13:53)
Part 6 Division 4 Section 68
68   Incurring of debts in respect of association to which this Division applies
(1)  If an association incurs a debt and:
(a)  immediately before the debt is incurred:
(i)  there are reasonable grounds for believing that the association is or will become insolvent, or
(ii)  there are reasonable grounds to expect that, if the association incurs the debt, the association will become insolvent, and
(b)  the association is or becomes an association to which this Division applies,
any person who was a committee member of the association at the time the debt was incurred is guilty of an offence.
Maximum penalty: 50 penalty units or imprisonment for 1 year, or both.
(2)  The association and any person who was a committee member of the association at the time the debt was incurred are jointly and severally liable for the payment of the debt.
(3)  In any proceedings against a person under subsection (1), it is a defence if the defendant proves:
(a)  that the debt was incurred without the defendant’s express or implied authority or consent, or
(b)  that, at the time the debt was incurred, the defendant did not have reasonable grounds:
(i)  to believe that the association was insolvent, or
(ii)  to expect that, if the association incurred that debt, it would become insolvent.
(4)  If subsection (2) renders a person or persons liable to pay a debt incurred by an association, the payment by that person or either or any of those persons of the whole or any part of the debt does not render the association liable to the person or persons concerned in respect of the amount so paid.