THE CORPORATIONS LAW

CHAPTER 5C - MANAGED INVESTMENT SCHEMES

PART 5C.5 - THE COMPLIANCE COMMITTEE

SECTION 601JG   WHEN CAN RESPONSIBLE ENTITY PAY INSURANCE PREMIUMS FOR COMPLIANCE COMMITTEE MEMBERS?  

601JG(1)  [Insurance premium]  

A scheme's responsible entity or a related body corporate must not pay, or agree to pay, a premium in respect of a contract insuring a person who is or has been a member of the scheme's compliance committee against a liability:

(a)  incurred by the person as a member; and

(b)  arising out of conduct involving a wilful breach of a duty referred to in section 601JD.

601JG(2)  [Contract void]  

If subsection (1) is contravened, the contract is void in so far as it insures the person against the liability.

601JG(3)  [Costs and expenses in defending proceedings]  

Subsections (1) and (2) do not apply to a liability for costs and expenses incurred by a person in defending proceedings, whether civil or criminal and whatever their outcome.

601JG(4)  [Meaning of ``pay'']  

In this section:

pay includes pay indirectly through one or more interposed entities.