Western Australian Current Acts Western Australian Current Acts (1) In this section
—
business judgment , in relation to a GTE, means
any decision to take or not take action in respect of a matter relevant to the
business operations of the GTE.
(2) A director, chief
executive officer or executive officer of a GTE must perform the functions of
their office with the degree of care and diligence that a reasonable person
would exercise if they —
(a) were
a director or officer of a corporation in the GTE’s circumstances; and
(b)
occupied the office held by, and had the same responsibilities within the GTE
as, the director or officer.
(3) A person commits
an offence if they contravene subsection (2).
Penalty for this subsection: a fine of $5 000.
(4) A director or
officer of a GTE who makes a business judgment is taken to meet the
requirements of subsection (2), and their duties under section 45(1), in
respect of the judgment if they —
(a) make
the judgment in good faith for a proper purpose; and
(b) do
not have a material personal interest in the subject matter of the judgment;
and
(c)
inform themselves about the subject matter of the judgment to the extent they
reasonably believe to be appropriate; and
(d)
rationally believe that the judgment is in the best interests of the GTE.
(5) A director’s
or officer’s belief that a judgment is in the best interests of the GTE
is a rational one unless the belief is one that no reasonable person in their
position would hold.