THE CORPORATIONS LAW

CHAPTER 2D - OFFICERS AND EMPLOYEES

PART 2D.1 - DUTIES AND POWERS

Division 1 - General duties

SECTION 187   DIRECTORS OF WHOLLY-OWNED SUBSIDIARIES  

187     A director of a corporation that is a wholly-owned subsidiary of a body corporate is to be 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.