Good faith, use of position and use of information – criminal offences (cf Corporations Act s 184)
196 Good faith, use of position and use of information – criminal offences (cf Corporations Act s 184)
Good faith – directors and other officer
A director or other officer of a co-operative commits an offence if they:
are reckless; or
are intentionally dishonest;
and fail to exercise their powers and discharge their duties:
in good faith in the best interests of the co-operative; or
for a proper purpose.
Use of position – directors, other officers and employees
A director, other officer or employee of a co-operative commits an offence if they use their position dishonestly:
(a) with the intention of directly or indirectly gaining an advantage for themselves, or someone else, or causing detriment to the co-operative; or
(b) recklessly as to whether the use may result in themselves or someone else directly or indirectly gaining an advantage, or in causing detriment to the co‑operative.
Use of information – directors, other officers and employees
A person who obtains information because they are, or have been, a director or other officer or employee of a co-operative commits an offence if they use the information dishonestly:
(a) with the intention of directly or indirectly gaining an advantage for themselves, or someone else, or causing detriment to the co-operative; or
(b) recklessly as to whether the use may result in themselves or someone else directly or indirectly gaining an advantage, or in causing detriment to the co-operative.
Maximum penalty: $200 000 or imprisonment for 5 years, or both.
This Act’s bill:Explanatory statement
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