Corporations Act 2001

CHAPTER 5C - MANAGED INVESTMENT SCHEMES  

PART 5C.5 - THE COMPLIANCE COMMITTEE  

SECTION 601JF   WHEN CAN RESPONSIBLE ENTITY INDEMNIFY COMPLIANCE COMMITTEE MEMBERS?  

601JF(1)    
A scheme ' s responsible entity or a related body corporate must not:

(a)    indemnify a person who is or has been a member of the scheme ' s compliance committee against a liability incurred by the person as a member; or

(b)    exempt the person from such a liability.

601JF(2)    
A provision of the scheme ' s constitution or a body corporate ' s constitution is void in so far as it provides for the responsible entity or a related body corporate to do something that subsection (1) prohibits.

601JF(3)    
Subsection (1) does not prevent a person from being indemnified against a liability to another person (other than the responsible entity or a related body corporate) unless the liability arises out of conduct involving a lack of good faith.

601JF(4)    
Subsection (1) does not prevent a person from being indemnified against a liability for costs and expenses incurred by them:

(a)    in defending proceedings, whether civil or criminal, in which judgment is given in favour of them or in which they are acquitted; or

(b)    in connection with an application, in relation to such proceedings, in which the Court grants relief to them under this Act.

601JF(5)    
In this section:

indemnify
includes indemnify indirectly through one or more interposed entities.