Document ID: chunk:federal_register_of_legislation:C2004C01070:clause:1_181
Version: federal_register_of_legislation:C2004C01070
Segment Type: clause
Provision Reference: sch 1 cl 181
Character Range: 10506–11156

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).