187
In forceDirectors of wholly‑owned subsidiaries
Volume 1Chapter 1, Part 1.1 to Chapter 2J, Part 2J.4 sections 1 to 260E
Chapter 2DOfficers and employees
Part 2D.1Duties and powers
Division 1General duties
187 Directors of wholly‑owned subsidiaries
A director of a corporation that is a wholly‑owned subsidiary of a body corporate is taken to act in good faith in the best interests of the subsidiary if:
(a)
the constitution of the subsidiary expressly authorises the director to act in the best interests of the holding company; and
(b)
the director acts in good faith in the best interests of the holding company; and
(c)
the subsidiary is not insolvent at the time the director acts and does not become insolvent because of the director’s act.
This Act’s bill:Explanatory memorandumSecond reading speech
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