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).