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 an amount of a criminal, civil or administrative penalty incurred by the director in relation to a contravention of a law of the Commonwealth (including this Act); or

(c)    the payment of any amount payable under an infringement notice (however described) given under a law of the Commonwealth (including this Act); or

(d)    

liability for the costs of undertaking a course of education in compliance with an education direction (within the meaning of this Act).

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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