196Good faith, use of position and use of information—criminal offences

196 Good faith, use of position and use of information—criminal offences

196 Good faith, use of position and use of information—criminal offences

(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.