Corporations (Aboriginal and Torres Strait Islander) Act 2006

CHAPTER 6 - OFFICERS  

PART 6-4 - DUTIES AND POWERS OF DIRECTORS AND OTHER OFFICERS AND EMPLOYEES  

Division 265 - General duties  

SECTION 265-45   MEANING OF REASONABLE RELIANCE ON INFORMATION OR ADVICE PROVIDED BY OTHERS  

265-45(1)    
If:

(a)    a director of an Aboriginal and Torres Strait Islander corporation 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.

265-45(2)    
To avoid doubt, a person may be considered an expert in relation to questions of traditional laws and customs.