Corporations Act 2001
Modifying legislative instruments: The application of Ch 5C is affected by the following legislative instruments that commenced on or after 1 January 2022: ASIC Corporations (Asset Holding Standards for Responsible Entities) Instrument 2024/16.
CCH Note: Section 601JF is modified by the ASIC Corporations (Discretions for Setting the Issue Price and Withdrawal Price of Interests in Managed Investment Schemes) Instrument 2023/693; and the ASIC Corporations (Changing the Responsible Entity) Instrument 2023/681.
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)
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)
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)
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 Act.
601JF(5)
In this section:
indemnify
includes indemnify indirectly through one or more interposed entities.
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