Statutory officer duties

We monitor practices to ensure they comply with the Registered Organisations Act.

The general duties of officers under the Registered Organisations Act apply to all officers of registered organisations with financial management duties. 

The duties of officers include:

• the duty to exercise their power with care and diligence
• the duty to act in good faith and for a proper purpose
• the obligation not to misuse their position and information.

Officers must disclose any conflict of interest. If there's a conflict of interest, officers are restricted in participating in decision making. 

Learn about disclosure requirements for officers.

The Federal Court enforces civil penalties (such as fines) for failure to comply with the general duties. A breach that involves recklessness or intentional dishonesty is also a criminal offence. 

For more information about the duties, read our guide to duties for officers.

Care and diligence

Officers must exercise their powers and perform their duties with the level of care and diligence that a reasonable person would exercise if they were an officer holding the same position.

This includes:

• acting with care to minimise risk or damage
• being properly informed before making a decision. 

The reasonable judgement rule protects an officer who makes a decision to take (or not take) action if they: 

• make the decision in good faith for a proper purpose
• do not have a conflict of interest 
• inform themselves before making the decision
• rationally believe that it’s in the best interests of the organisation. 

For an example, read a summary of a case where the Court found an officer breached their duty of care and diligence.

Good faith and a proper purpose

Officers must exercise their powers and discharge their duties in good faith: 

• in the best interests of their organisation  
• for a proper purpose.

An officer may be in breach of these duties if they:

• engage in conduct they know isn't in the best interests of their organisation and for a proper purpose
• act for a purpose that they know, or ought to have known, was an improper use of power.

For an example, read a summary of a case where the Court found an officer breached their duty of good faith and proper purpose.

Misuse of position and information

Officers and employees who perform financial management duties hold positions of trust and are able to access information about the registered organisation when performing their role. 

These officers and employees must not improperly use their position or the information they're able to access to:

• gain an advantage for themselves or someone else
• cause detriment to the registered organisation or to someone else. 

These duties may be breached if an officer or employee:

• gives themself or someone else an advantage or special favour they weren't entitled to
• uses information obtained in their role to make a personal gain or cause detriment to the organisation or to another person.

All officers with financial management duties must complete approved financial training.

Learn about mandatory financial training for officers.

View our list of approved financial training packages.