New South Wales Consolidated Acts

CIVIL LIABILITY ACT 2002 - SECT 6P

6P Special provisions applying when trustees of associated trust appointed

(1) Despite any Act or other law or instrument (including any trust deed), the trustees of an associated trust of an unincorporated organisation may do one or more of the following--

(a) consent to be appointed by the organisation as a proper defendant,

(b) supply any information about the trust that may be required under this Division, including identifying the financial capacity of the trust,

(c) apply trust property to satisfy any liability incurred by the trustee as a proper defendant in child abuse proceedings.

(2) Liability of a trustee of an associated trust incurred by the trustee as a proper defendant in child abuse proceedings is limited to the value of the trust property.

(3) The satisfaction of any liability incurred by a trustee of an associated trust as a proper defendant in child abuse proceedings is a proper expense for which the trustee may be indemnified out of the trust property, irrespective of any limitation on any right of indemnity a trustee may have.

(4) A trustee of an associated trust is not liable for a breach of trust only because of doing anything authorised by this section.

(5) The provisions of this section are declared to be Corporations legislation displacement provisions for the purposes of section 5G of the Corporations Act 2001 of the Commonwealth in relation to the provisions of the Corporations legislation generally.

Note : Section 5G of the Corporations Act 2001 of the Commonwealth enables a State to displace the operation of the provisions of the Corporations legislation of the Commonwealth in favour of provisions of State laws that are declared under State law to be Corporations legislation displacement provisions for the purposes of that section. See, in particular, section 5G(4) and (11) of the Corporations Act 2001 of the Commonwealth in relation to the displacement effected by this section.

(6) In this section--

"liability" incurred by the trustee as a proper defendant in child abuse proceedings includes any unpaid judgment debt arising from the proceedings, any amount paid in settlement of the proceedings and any costs associated with the proceedings.