Board or Committee members will have new duties, which include:
- Exercising powers and discharge duties with care and diligence
- Acting in good faith, in the best interests of the association and for a proper purpose
- Preventing the organisation from trading while it is insolvent.
Breaches of these duties will result in new fines, with the main defences being:
- Business judgement – informed decisions were made in good faith in the interests of the association
- Reliance on information – a decision relied on information provided by a competent person.