When can responsible entity pay insurance premiums for compliance committee members?
601JG When can responsible entity pay insurance premiums for compliance committee members?
A scheme’s responsible entity or a related body corporate must not pay, or agree to pay, a premium in respect of a contract insuring 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; and
arising out of conduct involving a wilful breach of a duty referred to in section 601JD.
If subsection (1) is contravened, the contract is void in so far as it insures the person against the liability.
Subsections (1) and (2) do not apply to a liability for costs and expenses incurred by a person in defending proceedings, whether civil or criminal and whatever their outcome.
In this section:
pay includes pay indirectly through one or more interposed entities.
This Act’s bill:Explanatory memorandumSecond reading speech
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