Directors and officers have a personal duty to exercise
"due diligence" to ensure their company is complying with
its obligations under the harmonised work health and safety laws. A
recent case gives an insight into what's required to meet that
threshold.
A director and employer were charged under the (now repealed)
OHS Act after an employee, Mr Lama, caused an extensive fire while
decanting liquid for manufacturing paint thinner. Mr Lama was
qualified, experienced and trained in the task. But on that
occasion, he neglected to adequately check the equipment.
The employer, Omega International Coatings, pleaded guilty and
copped a $40,000 fine.
The director, Mr Shetty, was personally charged for failing to
"use all due diligence to prevent the
contravention". He defended the charge, and it paid
off.
