Superannuation Industry (Supervision) Act 1993

PART 6 - PROVISIONS RELATING TO GOVERNING RULES OF SUPERANNUATION ENTITIES  

SECTION 52C   COVENANT RELATING TO DIRECTORS TO BE INCLUDED IN GOVERNING RULES - SELF MANAGED SUPERANNUATION FUNDS  

Governing rules taken to contain covenant

52C(1)    
If the governing rules of a self managed superannuation fund of which a trustee is a body corporate do not contain a covenant to the effect of the covenant set out in subsection (2), those governing rules are taken to contain a covenant to that effect.

The covenant

52C(2)    
The covenant referred to in subsection (1) is a covenant by each director of a corporate trustee of the fund to exercise a reasonable degree of care and diligence for the purposes of ensuring that the corporate trustee carries out the covenants referred to in section 52B .

Reasonable degree of care and diligence

52C(3)    
The reference in subsection (2) to a reasonable degree of care and diligence is a reference to the degree of care and diligence that a reasonable person in the position of director of the corporate trustee would exercise in the corporate trustee ' s circumstances.

Covenant operates as if director party to the governing rules

52C(4)    
The covenant referred to in subsection (2) operates as if the director were a party to the governing rules.