Section 190 — Corporations Act 2001 (Cth)

(1) If the directors delegate a power under section 198D, a director is responsible for the exercise of the power by the delegate as if the power had been exercised by the directors themselves.

(2) A director is not responsible under subsection (1) if:

(a) the director believed on reasonable grounds at all times that the delegate would exercise the power in conformity with the duties imposed on directors of the company by this Act and the company’s constitution (if any); and

(b) the director believed:

(i) on reasonable grounds; and

(ii) in good faith; and

(iii) after making proper inquiry if the circumstances indicated the need for inquiry;

that the delegate was reliable and competent in relation to the power delegated.

Related sections

• s 187 — Directors of wholly‑owned subsidiaries
• s 188 — Responsibility of secretaries etc. for certain corporate contraventions
• s 189 — Reliance on information or advice provided by others
• s 190A — Limited application of Division to registrable Australian bodies
• s 190B — Division does not apply to Aboriginal and Torres Strait Islander corporations
• s 190C — Division does not apply in relation to notified foreign passport funds or their operators

Research how courts apply s 190

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