Corporations Act 2001
A term of a debenture, provision of a trust deed or a term of a contract with holders of debentures secured by a trust deed, is void in so far as the term or provision would have the effect of:
(a) exempting a trustee from liability for breach of section 283DA for failure to show the degree of care and diligence required of it as trustee; or
(b) indemnifying the trustee against that liability;
unless the term or provision:
(c) releases the trustee from liability for something done or omitted to be done before the release is given; or
(d) enables a meeting of debenture holders to approve the release of the trustee from liability for something done or omitted to be done before the release is given. 283DB(2) [ When release of trustee approved]
For the purposes of paragraph (1)(d):
(a) a release is approved if the debenture holders who vote for the resolution hold 75% of the nominal value of the debentures held by all the debenture holders who attend the meeting and vote on the resolution; and
(b) a debenture holder attends the meeting and votes on the resolution if:
(i) they attend the meeting in person and vote on the resolution; or
(ii) if proxies are permitted - they are represented at the meeting by a proxy and the proxy votes on the resolution.
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