Commonwealth Repealed Acts
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This legislation has been repealed.
CORPORATIONS LAW- SECT 189
Reliance on information or advice provided by others
If:
- (a)
- a director
relies on information, or professional or expert advice, given or prepared by:
- (i)
- an
employee of the corporation whom the director believes on reasonable grounds
to be reliable and competent in relation to the matters concerned;
or
- (ii)
- a professional adviser or expert in relation to matters that the
director believes on reasonable grounds to be within the person's professional
or expert competence; or
- (iii)
- another director or officer in relation to matters within the
director's or officer's authority; or
- (iv)
- a committee of directors on which the director did not serve in
relation to matters within the committee's authority; and
- (b)
- the reliance
was made:
- (i)
- in good
faith; and
- (ii)
- after making an independent assessment of the information or
advice, having regard to the director's knowledge of the corporation and the
complexity of the structure and operations of the corporation; and
- (c)
- the
reasonableness of the director's reliance on the information or advice arises
in proceedings brought to determine whether a director has performed a duty
under this Part or an equivalent general law duty;
the director's reliance on the information or advice is taken
to be reasonable unless the contrary is proved.
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