THE CORPORATIONS LAW

CHAPTER 2D - OFFICERS AND EMPLOYEES

PART 2D.1 - DUTIES AND POWERS

Division 1 - General duties

SECTION 181   GOOD FAITH - CIVIL OBLIGATIONS  

181(1)  Good faith - directors and other officers.  

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.

181(2)  [Involvement]  

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).