Document ID: chunk:federal_register_of_legislation:C2025C00185:section:191:p1
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 191 (pt 1/2)
Character Range: 569856–572424

191  Material personal interest—director's duty to disclose

Director's duty to notify other directors of material personal interest when conflict arises
 (1) A director of a company who has a material personal interest in a matter that relates to the affairs of the company must give the other directors notice of the interest unless subsection (2) says otherwise.
 (1A) For an offence based on subsection (1), strict liability applies to the circumstance, that the director of a company has a material personal interest in a matter that relates to the affairs of the company.
Note: For strict liability, see section 6.1 of the Criminal Code.
 (2) The director does not need to give notice of an interest under subsection (1) if:
 (a) the interest:
 (i) arises because the director is a member of the company and is held in common with the other members of the company; or
 (ii) arises in relation to the director's remuneration as a director of the company; or
 (iii) relates to a contract the company is proposing to enter into that is subject to approval by the members and will not impose any obligation on the company if it is not approved by the members; or
 (iv) arises merely because the director is a guarantor or has given an indemnity or security for all or part of a loan (or proposed loan) to the company; or
 (v) arises merely because the director has a right of subrogation in relation to a guarantee or indemnity referred to in subparagraph (iv); or
 (vi) relates to a contract that insures, or would insure, the director against liabilities the director incurs as an officer of the company (but only if the contract does not make the company or a related body corporate the insurer); or
 (vii) relates to any payment by the company or a related body corporate in respect of an indemnity permitted under section 199A or any contract relating to such an indemnity; or
 (viii) is in a contract, or proposed contract, with, or for the benefit of, or on behalf of, a related body corporate and arises merely because the director is a director of the related body corporate; or
 (b) the company is a proprietary company and the other directors are aware of the nature and extent of the interest and its relation to the affairs of the company; or
 (c) all the following conditions are satisfied:
 (i) the director has already given notice of the nature and extent of the interest and its relation to the affairs of the company under subsection (1);
 (ii) if a person who was not a director of the company at the time when the notice under subsection (1) was