THE CORPORATIONS LAW

CHAPTER 2D - OFFICERS AND EMPLOYEES

PART 2D.2 - RESTRICTIONS ON INDEMNITIES, INSURANCE AND TERMINATION PAYMENTS

Division 1 - Indemnities and insurance for officers and auditors

SECTION 199B   INSURANCE PREMIUMS FOR CERTAIN LIABILITIES OF DIRECTOR, SECRETARY, OTHER OFFICER OR AUDITOR  

199B     A company or a related body corporate must not pay, or agree to pay, a premium for a contract insuring a person who is or has been an officer or auditor of the company against a liability (other than one for legal costs) arising out of:

(a)  conduct involving a wilful breach of duty in relation to the company; or

(b)  a contravention of section 182 or 183.

This section applies to a premium whether it is paid directly or through an interposed entity.




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