THE CORPORATIONS LAW

CHAPTER 5C - MANAGED INVESTMENT SCHEMES

PART 5C.2 - THE RESPONSIBLE ENTITY

Division 1 - Responsibilities and powers

SECTION 601FB   RESPONSIBLE ENTITY TO OPERATE SCHEME  

601FB(1)  [Responsible entity]  

The responsible entity of a registered scheme is to operate the scheme and perform the functions conferred on it by the scheme's constitution and this Law.

601FB(2)  [Agent]  

The responsible entity has power to appoint an agent, or otherwise engage a person, to do anything that it is authorised to do in connection with the scheme. For the purpose of determining whether:

(a)  there is a liability to the members; or

(b)  the responsible entity has properly performed its duties for the purposes of subsection 601GA(2);

the responsible entity is taken to have done (or failed to do) anything that the agent or person has done (or failed to do) because of the appointment or engagement, even if they were acting fraudulently or outside the scope of their authority or engagement.

Note:

A scheme's constitution may provide for the responsible entity to be indemnified for liabilities - see subsection 601GA(2).

601FB(3)  [Powers of agent]  

An agent appointed, or a person otherwise engaged, by:

(a)  the agent or person referred to in subsection (2); or

(b)  a person who is taken under this subsection to be an agent of the responsible entity;

to do anything that the responsible entity is authorised to do in connection with the scheme is taken to be an agent appointed by the responsible entity to do that thing for the purposes of subsection (2).

601FB(4)  [Indemnity]  

If:

(a)  an agent holds scheme property on behalf of the responsible entity; and

(b)  the agent is liable to indemnify the responsible entity against any loss or damage that:

(i) the responsible entity suffers as a result of a wrongful or negligent act or omission of the agent; and

(ii) relates to a failure by the responsible entity to perform its duties in relation to the scheme;

any amount recovered under the indemnity forms part of the scheme property.