We’re talking hypothetically here and there are a number of possible scenatios but if, for instance, the Owners Corp was informed, say, at an AGM that there was a safety problem, then they would be liable. If the EC was told and decided not to pass it on, they would be the ones in trouble – and if they had willfully ignored reliable advice, their EC insurance would probably have been invalidated so the members would be personally liable. If a building manager or strata manager knew there was a problem and didn’t tell the EC, they would be liable (as employees).
What happens when, say, one member of an EC votes NOT to ignore the advice but is outvoted by the others is a point I’ll leave to our legal friends. But I think the aim of the legislation isn’t to fine or jail people – it’s to get them to accept our responsibilities as owners, employers and a community.