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).