Western Australian Consolidated Acts

STATUTORY CORPORATIONS (LIABILITY OF DIRECTORS) ACT 1996 - SECT 9

9 .         Duty to act honestly

        (1)         A director must at all times act honestly in the performance of the functions of his or her office, whether within or outside the State.

        (2)         A person who contravenes subsection (1) — 

            (a)         with intent to deceive or defraud — 

                  (i)         the corporation; or

                  (ii)         creditors of the corporation or of any other person;

                or

            (b)         for any other fraudulent purpose,

                is guilty of a crime and is liable to a fine of $20 000 or imprisonment for 5 years, or both.

        Summary conviction penalty: A fine of $12 000 or imprisonment for 3 years, or both.

        (3)         If subsection (2) does not apply a person who contravenes subsection (1) is liable to a fine of $5 000.