(1) If:
(a) civil proceedings are brought against an officer of an organisation for negligence, default, breach of trust or breach of duty in a capacity as such an officer; and
(b) in the proceedings it appears to the court before which the proceedings are taken that:
(i) the officer is or may be liable in respect of the negligence, default or breach; and
(ii) the officer has acted honestly; and
(iii) having regard to all the circumstances of the case (including those connected with the officer's appointment), the officer ought fairly to be excused for the negligence, default or breach;
the court may relieve the officer either wholly or partly from liability on the terms that the court thinks appropriate.
(2) An officer of an organisation who has reason to apprehend that a claim will or might be made against him or her for negligence, default, breach of trust or breach of duty in a capacity as such an officer may apply to the Federal Court for relief. On the application, the Court has the same power to relieve the officer as it would have had under subsection (1) if it had been a court before which proceedings against the officer for negligence, default, breach of trust or breach of duty had been brought.