Statutory Duties

Question 1

[s180(1)]?

Answer 1

[s180(1)] Duty of Care, Skill, & Diligence

• [s180(1)] requires director / officer to consider alleviating action and balance the foreseeable risk with burden of taking alleviating action. Ask – whether a reasonable director would have / ought to have realised the financial risk / compliance risk / reputational risk
• Applies to: directors / officers – mirrors general law – civil liability only!

Question 2

[s181(1)]

Answer 2

[s181(1)] Good Faith, Best Interests, Proper Purpose - Director / officer must act in good faith, in the best interests of the company, and for a proper purpose

Objective Test: what would a reasonable director in like company in like circs have done? [ASIC v Adler]

Civil penalty provision: subject to [s187]

Question 3

[s182(1)]?

Answer 3

[s182(1)] Improper use of position – to (a) gain an advantage for themselves, or (b) cause a detriment to the company

Question 4

[s183(1)]?

Answer 4

[s183(1)] Improper use of information – to (a) gain an advantage for themselves, or (b) cause a detriment to the company