THE CORPORATIONS LAW

CHAPTER 5C - MANAGED INVESTMENT SCHEMES

PART 5C.5 - THE COMPLIANCE COMMITTEE

SECTION 601JF   WHEN CAN RESPONSIBLE ENTITY INDEMNIFY COMPLIANCE COMMITTEE MEMBERS?  

601JF(1)  [Indemnity]  

A scheme's responsible entity or a related body corporate must not:

(a)  indemnify a person who is or has been a member of the scheme's compliance committee against a liability incurred by the person as a member; or

(b)  exempt the person from such a liability.

601JF(2)  [Certain provisions void]  

A provision of the scheme's constitution or a body corporate's constitution is void in so far as it provides for the responsible entity or a related body corporate to do something that subsection (1) prohibits.

601JF(3)  [Liability to another]  

Subsection (1) does not prevent a person from being indemnified against a liability to another person (other than the responsible entity or a related body corporate) unless the liability arises out of conduct involving a lack of good faith.

601JF(4)  [Costs and expenses]  

Subsection (1) does not prevent a person from being indemnified against a liability for costs and expenses incurred by them:

(a)  in defending proceedings, whether civil or criminal, in which judgment is given in favour of them or in which they are acquitted; or

(b)  in connection with an application, in relation to such proceedings, in which the Court grants relief to them under this Law.

601JF(5) 

In this section:

indemnify includes indemnify indirectly through one or more interposed entities.