Document ID: chunk:federal_register_of_legislation:C2025C00185:section:181
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 181
Character Range: 558126–558768

181  Good faith—civil obligations

Good faith—directors and other officers
 (1) A director or other officer of a corporation must exercise their powers and discharge their duties:
 (a) in good faith in the best interests of the corporation; and
 (b) for a proper purpose.
Note 1: This subsection is a civil penalty provision (see section 1317E).
Note 2: Section 187 deals with the situation of directors of wholly‑owned subsidiaries.
 (2) A person who is involved in a contravention of subsection (1) contravenes this subsection.
Note 1: Section 79 defines involved.
Note 2: This subsection is a civil penalty provision (see section 1317E).