Corporations Act 2001

CHAPTER 2D - OFFICERS AND EMPLOYEES  

PART 2D.2 - RESTRICTIONS ON INDEMNITIES, INSURANCE AND TERMINATION PAYMENTS  

Division 1 - Indemnities and insurance for officers and auditors  

SECTION 199B   INSURANCE PREMIUMS FOR CERTAIN LIABILITIES OF DIRECTOR, SECRETARY, OTHER OFFICER OR AUDITOR  

199B(1)    
A company or a related body corporate must not pay, or agree to pay, a premium for a contract insuring a person who is or has been an officer or auditor of the company against a liability (other than one for legal costs) arising out of:

(a)    conduct involving a wilful breach of duty in relation to the company; or

(b)    a contravention of section 182 or 183 .

This section applies to a premium whether it is paid directly or through an interposed entity.

Note: This section has an extended operation in relation to officers and auditors of the corporate director of a CCIV: see section 1225E .

199B(2)    

An offence based on subsection (1) is an offence of strict liability.

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