Corporations Act 2001
CHAPTER 2D
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OFFICERS AND EMPLOYEES
PART 2D.1
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DUTIES AND POWERS
Division 1
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General duties
SECTION 187
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.
Note: This Division applies in relation to CCIVs in a modified form: see sections 1224C .
View history note
Hide history noteA 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.
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