Corporations (Aboriginal and Torres Strait Islander) Act 2006

CHAPTER 6 - OFFICERS  

PART 6-4 - DUTIES AND POWERS OF DIRECTORS AND OTHER OFFICERS AND EMPLOYEES  

Division 265 - General duties  

SECTION 265-50   RESPONSIBILITY FOR ACTIONS OF DELEGATE  

265-50(1)    
If the directors of an Aboriginal and Torres Strait Islander corporation delegate a power under section 274-10 , each director is responsible for the exercise of the power by the delegate as if the power had been exercised by the directors themselves.

265-50(2)    
A director of an Aboriginal and Torres Strait Islander corporation is not responsible under subsection (1) if:

(a)    the director believed on reasonable grounds at all times that the delegate would exercise the power in conformity with the duties imposed on directors of the corporation by this Act and the corporation ' s constitution (if any); and

(b)    the director believed:

(i) on reasonable grounds; and

(ii) in good faith; and

(iii) after making proper inquiry if the circumstances indicated the need for inquiry;

that the delegate was reliable and competent in relation to the power delegated.