SUPERANNUATION INDUSTRY (SUPERVISION) ACT 1993

PART 6 - PROVISIONS RELATING TO GOVERNING RULES OF SUPERANNUATION ENTITIES  

SECTION 57   INDEMNIFICATION OF DIRECTORS OF TRUSTEE FROM ASSETS OF ENTITY  

57(1)  
Subject to subsection (2), the governing rules of a superannuation entity may provide for a director of the trustee to be indemnified out of the assets of the entity in respect of a liability incurred while acting as a director of the trustee.

57(2)  
A provision of the governing rules of a superannuation entity is void in so far as it would have the effect of indemnifying a director of the trustee against:


(a) a liability that arises because the director:


(i) fails to act honestly in a matter concerning the entity; or

(ii) intentionally or recklessly fails to exercise, in relation to a matter affecting the entity, the degree of care and diligence that the director is required to exercise; or


(b) liability for a monetary penalty under a civil penalty order; or


(c) the payment of any amount payable under an infringement notice; or


(d) liability for the costs of undertaking a course of education in compliance with an education direction; or


(e) liability for an administrative penalty imposed by section 166 .

57(3)  
A director of the trustee of a superannuation entity may be indemnified out of the assets of the entity in accordance with provisions of the entity ' s governing rules that comply with this section.

57(4)  


This section has effect despite section 241 of the Corporations Act 2001 .



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