Commonwealth Consolidated Acts Commonwealth Consolidated ActsGoverning rules taken to contain covenant
(1) If the governing rules of a self managed superannuation fund of which a trustee is a body corporate do not contain a covenant to the effect of the covenant set out in subsection (2), those governing rules are taken to contain a covenant to that effect.
The covenant
(2) The covenant referred to in subsection (1) is a covenant by each director of a corporate trustee of the fund to exercise a reasonable degree of care and diligence for the purposes of ensuring that the corporate trustee carries out the covenants referred to in section 52B.
Reasonable degree of care and diligence
(3) The reference in subsection (2) to a reasonable degree of care and diligence is a reference to the degree of care and diligence that a reasonable person in the position of director of the corporate trustee would exercise in the corporate trustee's circumstances.
Covenant operates as if director party to the governing rules
(4) The covenant referred to in subsection (2) operates as if the director were a party to the governing rules.