196Good faith, use of position and use of information—criminal (cf Corporations Act s 184)

196 Good faith, use of position and use of information—criminal (cf Corporations Act s 184)

(1) Good faith—directors and other officer

A director or other officer of a co-operative commits an offence if they:

(a) are reckless; or

(b) are intentionally dishonest;

and fail to exercise their powers and discharge their duties:

(c) in good faith in the best interests of the co-operative; or

(d) for a proper purpose.

(2) Use of position—directors, other officers and employees

A director, other officer or employee of a co-operative commits an offence if they use their position dishonestly:

(a) with the intention of directly or indirectly gaining an advantage for themselves, or someone else, or causing detriment to the co-operative; or

(b) recklessly as to whether the use may result in themselves or someone else directly or indirectly gaining an advantage, or in causing detriment to the co-operative.

(3) Use of information—directors, other officers and employees

A person who obtains information because they are, or have been, a director or other officer or employee of a co-operative commits an offence if they use the information dishonestly:

(a) with the intention of directly or indirectly gaining an advantage for themselves, or someone else, or causing detriment to the co-operative; or

(b) recklessly as to whether the use may result in themselves or someone else directly or indirectly gaining an advantage, or in causing detriment to the co-operative.

Maximum penalty: $200,000 or imprisonment for 5 years, or both.