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Crown Entities Act 2004

Establishment and governance of Crown entities - Statutory entities - Individual duties of members

56: Duty to act with reasonable care, diligence, and skill

You could also call this:

"Be careful and work hard in your role, like a reasonable person would."

When you are a member of a statutory entity, you must be careful and work hard. You need to think about what a reasonable person would do in the same situation. You have to consider the type of entity you are part of, what you are doing, and what your role is.

You must think about the kind of entity you are working with and what that means for your work. You also have to think about what you are doing and how it affects the entity. Your position and the tasks you have to do are important to consider when making decisions.

As a member, you have to use the skills and knowledge you have to make good decisions. You have to be diligent and careful in everything you do. This means you have to work hard and think carefully about what you are doing.

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Part 2Establishment and governance of Crown entities
Statutory entities: Individual duties of members

56Duty to act with reasonable care, diligence, and skill

  1. A member of a statutory entity must, when acting as a member, exercise the care, diligence, and skill that a reasonable person would exercise in the same circumstances, taking into account (without limitation)—

  2. the nature of the statutory entity; and
    1. the nature of the action; and
      1. the position of the member and the nature of the responsibilities undertaken by him or her.