Indemnification and exemption of governing board members
91 Indemnification and exemption of governing board members
A territory authority must not exempt a governing board member (whether directly or through another entity) from liability to the authority.
A territory authority must not indemnify a governing board member (whether directly or through another entity and whether by agreement or by making a payment) against any of the following liabilities incurred as a board member:
a liability owed to the authority;
a liability owed to someone other than the authority that did not arise from honest conduct.
A territory authority must not indemnify a governing board member (whether directly or through another entity and whether by agreement or by making a payment) against legal costs incurred as a member if the costs are incurred—
in defending or resisting a proceeding if the person is found to have a liability for which the person could not be indemnified under subsection (2); or
A governing board member is not personally liable for certain acts done or omissions made honestly and without recklessness (see s 90).
in defending or resisting a criminal proceeding in which the person is found guilty.
In this section:
authority includes a subsidiary (if any) of the authority.
This Act’s bill:Explanatory statement
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