Commonwealth Numbered Acts

SUPERANNUATION INDUSTRY (SUPERVISION) ACT 1993 No. 78, 1993 - SECT 56

56.(1) A provision in the governing rules of a superannuation entity is void
if:

   (a)  it purports to preclude the trustee from being indemnified out of the
        assets of the entity in respect of any liability incurred while acting
        as trustee of the entity; or

   (b)  subject to subsection (2), it limits the amount of such an indemnity.

(2) A provision in the governing rules of a superannuation entity is void in
so far as it would have the effect of exempting the trustee from, or
indemnifying the trustee against:

   (a)  liability for breach of trust if the trustee:

        (i)    fails to act honestly in a matter concerning the entity; or

        (ii)   intentionally or recklessly fails to exercise, in relation to a
               matter affecting the entity, the degree of care and diligence
               that the trustee was required to exercise; or

   (b)  liability for a monetary penalty under a civil penalty order.

(3) Nothing in the governing rules of a superannuation entity prohibits the
trustee of the entity from seeking advice from any person in respect of any
matter relating to performance of the duties or the exercise of the powers of
the trustee. A provision in the governing rules that purports to preclude the
trustee from being indemnified out of assets of the entity in respect of the
cost of obtaining such advice, or to limit the amount of such an indemnity, is
void.