SUPERANNUATION INDUSTRY (SUPERVISION) ACT 1993

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

SECTION 108   DUTY OF TRUSTEE OF EMPLOYER-SPONSORED FUND TO ESTABLISH PROCEDURE FOR APPOINTING INDEPENDENT TRUSTEE OR INDEPENDENT MEMBER OF BOARD OF DIRECTORS OF CORPORATE TRUSTEE  

108(1)   [Application of section]  

This section applies if a standard employer-sponsored fund (other than a self managed superannuation fund) relies on subsection 89(2) in order to comply with the basic equal representation rules. (That subsection deals with an additional independent trustee or an additional independent director of a corporate trustee.)

108(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) ensuring that the additional independent trustee or additional independent director, as the case may be, can only be removed by the same procedure as that by which the additional independent trustee or additional independent director was appointed, except in the event of:


(i) death; or

(ii) mental or physical incapacity; or

(iia) the additional independent trustee or additional independent director no longer meeting one or more of the criteria for fitness and propriety relevant to the independent trustee or independent director set out in the prudential standards; or

(iii) the additional independent trustee or additional independent director, as the case may be, becoming a disqualified person within the meaning of Part 15 ; or

(iv) suspension or removal under Part 17 ; or

(v) 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 removal of the additional independent trustee or additional independent director, as the case may be.

108(3)   [Offence and penalty]  

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

Penalty: 100 penalty units.

108(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 .




This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.