Commonwealth Authorities and Companies Act. Australia

believes that the judgment is in the best interests of the Commonwealth authority.

      The officer’s belief that the judgment is in the best interests of the Commonwealth authority is a rational one unless the belief is one that no reasonable person in his or her position would hold.

      Note: This subsection only operates in relation to duties under this section and their equivalents under the general law (including the duty of care that arises under the common law principles governing liability for negligence) — it does not operate in relation to duties under any other provision of this Act or under any other laws.

      (3) In this section:

      business judgment means any decision to take or not take action in respect of a matter relevant to the operations of the Commonwealth authority.

      23 Good faith — civil obligations

      Good faith — officers

      (1) An officer of a Commonwealth authority must exercise his or her powers and discharge his or her duties:

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

      (b) for a proper purpose.

      Note 1: This subsection is a civil penalty provision (see Schedule 2).

      Note 2: Section 187 of the Corporations Act 2001 deals with the position of directors of wholly-owned subsidiaries of Commonwealth authorities.

      Note 3: Section 27A makes provision for persons who are also APS employees or Agency Heads.

      (2) A person who is involved in a contravention of subsection (1) contravenes this subsection.

      Note 1: Section 5 defines involved.