31ADuties of members of Board, officers and employees

31A Duties of members of Board, officers and employees

[Section 31A Inserted by No. 38 of 2022, s. 10, Applied:30 Nov 2022]

(1)  In this section –

business judgment means any decision to take or not take action in respect of a matter relevant to the business operations of the Authority;

former employee means a person who ceased to be an employee within the period of 7 years immediately preceding the relevant time;

former member of the Board means a person who ceased to be a member of the Board within the period of 7 years immediately preceding the relevant time;

former officer means a person who ceased to be an officer within the period of 7 years immediately preceding the relevant time.

(2)  A member of the Board or an officer of the Authority must perform and exercise the functions and powers of his or her office in the Authority –

(a) in good faith in the best interests of the Authority; and

(b) for a proper purpose.

Penalty:  Fine not exceeding 2 000 penalty units or imprisonment for a term not exceeding 5 years, or both.

(3)  A member of the Board or an officer of the Authority must exercise his or her powers and perform his or her functions with the degree of care and diligence that a reasonable person would exercise if he or she –

(a) were a member of the Board or an officer of the Authority in the circumstances of the Authority; and

(b) occupied the office held by, and had the same responsibilities within the Authority as, the member of the Board or officer.

Penalty:  Fine not exceeding 2 000 penalty units or imprisonment for a term not exceeding 5 years, or both.

(4)  A member of the Board or an officer of the Authority who makes a business judgment is taken to meet the requirements of subsection (3) , and his or her equivalent duties at common law and in equity, in respect of the judgment if the member of the Board or officer –