SUPERANNUATION INDUSTRY (SUPERVISION) ACT 1993

PART 12 - DUTIES OF TRUSTEES AND INVESTMENT MANAGERS OF SUPERANNUATION ENTITIES  

SECTION 107   DUTY OF TRUSTEE OF EMPLOYER-SPONSORED FUND TO ESTABLISH PROCEDURE FOR APPOINTING MEMBER REPRESENTATIVES  

107(1)   [Application of section]  

This section applies if the trustee, or the trustees, of a standard employer-sponsored fund (other than a superannuation fund with fewer than 5 members) are required by law:


(a) if the trustee is a single corporate trustee - to have member representatives on the board of directors of the trustee; or


(b) if there is a group of individual trustees - to have member representatives included in the group; or


(c) in any other case - to have member representatives on a policy committee of the fund.

107(2)   [Rules to be established]  

Each trustee of the fund must ensure that:


(a) rules are established (whether by inclusion in the governing rules or otherwise):


(i) setting out a procedure for appointing the member representatives; and

(ii) ensuring that member representatives so appointed can only be removed by the same procedure as that by which they were appointed, except in the event of:

(A) death; or

(B) mental or physical incapacity; or

(C) retirement; or

(D) termination of employment; or

(DA) the member representative no longer meeting one or more of the criteria for fitness and propriety relevant to the member representative set out in the prudential standards; or

(E) the member representative becoming a disqualified person within the meaning of Part 15 ; or

(F) suspension or removal under Part 17 ; or

(G) other prescribed circumstances; and


(b) those rules are published in such a way as will make members of the fund aware of the procedure for appointment and removal of member representatives.

107(3)   [Offence and penalty]  

A trustee is guilty of an offence if the trustee contravenes subsection (2).

Penalty: 100 penalty units.

107(4)   [Strict liability]  

A trustee is guilty of an offence if the trustee contravenes subsection (2). This is an offence of strict liability.

Penalty: 50 penalty units.

Note 1:

Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.

Note 2:

For strict liability , see section 6.1 of the Criminal Code .




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