18BDuty to notify members of adverse circumstances

### 18B Duty to notify members of adverse circumstances > [*\[Section 18B of Part 2 Inserted by No. 18 of 2025, s. 9, Applied:01 Jan 2026\]*](/view/html/inforce/2026-01-01/act-2025-018#GS9@EN) > > > (1)  In this section – > > > > > ***governing documents***, in relation to a company, includes – > > > > > > > > (a) the statement of expectations in force in respect of the company and its subsidiaries under [section 11A](#GS11A@EN) ; and > > > > > > > > > (b) each direction under [section 11B](#GS11B@EN) in effect in respect of the company and its subsidiaries; and > > > > > > > > > (c) the statement of corporate intent in force in respect of the company and its subsidiaries under [section 11F](#GS11F@EN) ; and > > > > > > > > > (d) the Treasurer’s Instructions in force in respect of the company and its subsidiaries. > > > (2)  The board of directors of a company must notify the members of the company, in writing, of any development which, in the opinion of the board, may – > > > > > > (a) prevent or significantly affect the achievement of the objectives, for the company or its subsidiaries, as specified in the governing documents of the company; or > > > > > > > (b) significantly affect the financial viability or operating ability of – > > > > > > > > > > (i) the company and its subsidiaries; or > > > > > > > > > > > (ii) any partnership, trust, joint venture or arrangement for the sharing of profits in which the company or its subsidiaries participate; or > > > > > > > (c) prevent the company or its subsidiaries from complying with a direction given to the company, or a subsidiary, under [section 11B](#GS11B@EN) ; or > > > > > > > (d) significantly affect the ability of the company or its subsidiaries to comply with a direction given to the company, or a subsidiary, under [section 11B](#GS11B@EN) ; or > > > > > > > (e) otherwise significantly affect the company, or its subsidiaries, in any manner. > > > (3)  A notification under [subsection (2)](#GS18B@Gs2@EN) in respect of a development is to be made as soon as possible after the board of directors becomes aware of the development.