Section 386 — Building Act 2004: Liability of principal for acts of agents

386 Liability of principal for acts of agents (1) The consequence specified in subsection (2) applies if a person (person A) commits an offence against this Act while acting as an agent (including a contractor) or employee of another person (person B). (2) Person B is liable under this Act in the same manner and to the same extent as if person B had personally committed the offence. (3) The liability of person B under subsection (2) is without prejudice to the liability of person A. (4) Despite subsection (2) , if proceedings are brought under that subsection, it is a defence if the defendant proves,— (a) in the case of a natural person (including a partner in a firm), that— (i) he or she did not know nor could reasonably be expected to have known that the offence was to be or was being committed; or (ii) he or she took all reasonable steps to prevent the commission of the offence; or (b) in the case of a body corporate, that— (i) neither the directors nor any person involved in the management of the body corporate knew or could reasonably be expected to have known that the offence was to be or was being committed; or (ii) the body corporate took all reasonable steps to prevent the commission of the offence; and (c) in all cases, that the defendant took all reasonable steps to remedy any effects of the act or omission giving rise to the offence. (5) If a body corporate is convicted of an offence against this Act, every director and every person concerned in the management of the body corporate is guilty of the same offence if it is proved— (a) that the act that constituted the offence took place with that person's authority, permission, or consent; and (b) that he or she knew or could reasonably be expected to have known that the offence was to be or was being committed and failed to take all reasonable steps to prevent or stop it. Compare: 1991 No 150 s 82A