THE CORPORATIONS LAW

CHAPTER 7 - SECURITIES

PART 7.3 - PARTICIPANTS IN THE SECURITIES INDUSTRY

Division 4 - Liability of principals for representatives' conduct

SECTION 821   NO CONTRACTING OUT OF LIABILITY FOR REPRESENTATIVE'S CONDUCT  

821(1)  [Who is liable]  

For the purposes of this section, a liability of a person:

(a)  in respect of conduct engaged in by another person as a representative of the first-mentioned person; or

(b)  arising under section 819 because another person has engaged in, proposed to engage in, or represented that the other person proposed to engage in, particular conduct;

is a liability of the first-mentioned person in respect of the other person.

821(2)  [Agreement excluding liability void]  

Subject to this section, an agreement is void in so far as it purports to exclude, restrict or otherwise affect a liability of a person in respect of another person, or to provide for a person to be indemnified in respect of a liability of the person in respect of another person.

821(3)  [Excepted agreements]  

Subsection (2) does not apply in relation to an agreement in so far as it:

(a)  is a contract of insurance;

(b)  provides for a representative of a person to indemnify the person in respect of a liability of the person in respect of the representative; or

(c)  provides for a licensee from whom a person holds a proper authority to indemnify another such licensee in respect of a liability of the other licensee in respect of the person.

821(4)  [Prohibition on making void agreements]  

A person shall not make, offer to make, or invite another person to offer to make, in relation to a liability of the first-mentioned person in respect of a person, an agreement that is or would be void, in whole or in part, by virtue of subsection (2).