How do National Australia Bank directors reconcile their legal duty to act in the best interests of the bank with its donation to a major Liberal fundraiser ("Fundraiser for Assistant Treasurer Kelly O'Dwyer to be sponsored by NAB amid banking firestorm",   April 15-16). 
NAB cannot be unaware that the conduct of it and other major banks is a current hot political issue, with fiercely contested options potentially directly affecting its own interests. NAB could not be unaware of the tendency of political donations to influence the actions, or inactions, of governing political parties, no matter how subtly or unconsciously.
Indeed, are not donations endorsement of past political behaviour, attempts to encourage future sympathetic treatment, or both? Donors contributing to both major parties (as some do) merely raise suspicions that they are hedging their bets. Donations conflict with MPs' responsibility to act in the public interest ahead of other interests.
The enormous economic power and resources of the major banks creates huge risks that their intervention in politics can distort democracy and undermine citizens' faith in Australia's governance. Most directors do not see donations to political parties as consistent with directors' duties and only a tiny minority of companies actually donate. Each NAB director should consider whether the funding of a political party event on their watch is consistent with their directors' duties or a corruption of Australian democracy.