Section 181 — Corporations Act 2001 (Cth)

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).

Related sections

• s 178D — Time within which ASIC must be notified
• s 179 — Simplified outline of this Part
• s 180 — Care and diligence—civil obligation only
• s 182 — Use of position—civil obligations
• s 183 — Use of information—civil obligations
• s 184 — Good faith, use of position and use of information—criminal offences

Research how courts apply s 181

BriefBridge searches Australian caselaw by meaning — every answer cited to the paragraph.