The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry revealed very clearly a major flaw in the Corporations Act.

The prime duty of the directors of a corporate body is to act in the best interests of shareholders, which, by implication means to maximise the profits for shareholders.

Nowhere is there any clear inference that, if the corporation provides a service to members of the public, its actions ought also to be directed to avoiding harm to the receiver of those services. Other legislation might well be invoked in those circumstances, but, in general, the corporation’s attention is firmly directed towards benefiting the shareholders. And if those who use corporate services are dissatisfied, they have to find other legal means to obtain satisfaction.

via Corporate power – customer powerless – » The Australian Independent Media Network