Australia Corporations Act 2001 (Cth)
Part 2D.1 and related: Director and officer duties – Australia Corporations Act 2001 (Cth)

Australia Corporations Act 2001 (Cth) s180: s 180 Exercise powers and discharge duties with reasonable care and diligence

Each director and other officer exercises their powers and discharges their duties with the care and diligence a reasonable person would show as a director or officer of a corporation in the corporation's circumstances holding the same office and responsibilities (s 180(1), a civil penalty provision). A business judgment (a decision to act or not on a matter relevant to business operations) meets the duty if made in good faith for a proper purpose, without a material personal interest, after the director informed themselves to the extent they reasonably believed appropriate, and with a rational belief that it is in the corporation's best interests (s 180(2), (3)). The business judgment rule does not protect failures to monitor or to comply with other statutory duties.

Maintained by Gerard Blokdyk

What else in your programme already covers this

This control maps to 1 controls across 1 other frameworks. If you already hold one of them, the evidence you collected for it is the starting point here rather than new work.

  • s27 s 27 Officers: exercise due diligence that the PCBU complies

Every mapping shown was judged rather than inferred from wording similarity, and the ones that failed review are published too. See the coverage reports and what was rejected.

Other controls in Part 2D.1 and related: Director and officer duties – Australia Corporations Act 2001 (Cth)

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The graph holds this control, the 1 it maps to, and the evidence behind each claim, over MCP and REST.