Western Australian Numbered Acts

CO-OPERATIVES ACT 2009 (NO. 24 OF 2009) - SECT 209

209 .         Standard of care and diligence required

        (1)         In the exercise of his or her powers and the discharge of his or her functions, an officer of a co-operative must exercise the degree of care and diligence that a reasonable person in a like position in a co-operative would exercise in the co-operative’s circumstances.

        Penalty: a fine of $2 000.

        (2)         An officer is not liable to be convicted for a contravention of this section if the co-operative has resolved by ordinary resolution to forgive the contravention.

        (3)         An officer of a co-operative who makes a business judgment is taken to meet the requirements of subsection (1), and their equivalent duties at common law and in equity, in respect of the judgment if the officer —

            (a)         makes the judgment in good faith for a proper purpose; and

            (b)         does not have a material personal interest in the subject matter of the judgment; and

            (c)         informs himself or herself about the subject matter of the judgment to the extent he or she reasonably believes to be appropriate; and

            (d)         rationally believes that the judgment is in the best interests of the co-operative.

        (4)         The officer’s belief that the judgment is in the best interests of the co-operative is a rational one unless the belief is one that no reasonable person in their position would hold.