11AObligation for care and diligence

11A Obligation for care and diligence

[Section 11A Inserted by No. 31 of 2001, s. 10, Applied:01 Sep 2001]

(1)  In this section,

business judgment means any decision to take or not to take action in respect of a matter relevant to the functions of the Council.

(2)  A member of the Council is to exercise his or her powers and discharge his or her duties with the degree of care and diligence that a reasonable person would exercise if he or she –

(a) were a member of the Council in the Council's circumstances; and

(b) occupied the office held by, and had the same responsibilities within the Council as, the member.

(3)  A member of the Council who makes a business judgment is taken to meet the requirements of subsection (2) , and his or her equivalent duties at common law and in equity, in respect of the judgment if he or she –

(a) makes the judgment in good faith for a proper purpose; and

(b) does not have a material personal interest in the subject matter of the judgment; and

(c) informs himself or herself about the subject matter of the judgment to the extent he or she reasonably believes to be appropriate; and

(d) rationally believes that the judgment is in the best interests of the University.

(4)  The member's belief that the judgment is in the best interests of the University is taken to be a rational one unless the belief is one that no reasonable person in his or her position would hold.