Superannuation Industry (Supervision) Act 1993
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
(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)
(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
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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