Commonwealth Consolidated Acts

CORPORATIONS ACT 2001 - SECT 181

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).