Insurance premiums for certain liabilities of director, secretary, other officer or auditor

In force

(1)

A company or a related body corporate must not pay, or agree to pay, a premium for a contract insuring a person who is or has been an officer or auditor of the company against a liability (other than one for legal costs) arising out of:

(a)

conduct involving a wilful breach of duty in relation to the company; or

(b)

a contravention of section 182 or 183.

This section applies to a premium whether it is paid directly or through an interposed entity.

Note:

This section has an extended operation in relation to officers and auditors of the corporate director of a CCIV: see section 1225E.

(2)

An offence based on subsection (1) is an offence of strict liability.

Note:

For strict liability, see section 6.1 of the Criminal Code.

This Act’s bill:Explanatory memorandum Second reading speech

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199B Insurance premiums for certain liabilities of director, secretary, other officer or auditor