Document ID: chunk:federal_register_of_legislation:F2025L00184:reg:12
Version: federal_register_of_legislation:F2025L00184
Segment Type: reg
Provision Reference: reg 12
Character Range: 8373–9210

12  Liability of trustee or corporate director
  The governing rules of a community charity must prohibit the charity from indemnifying:
 (a) the trustee or corporate director; or
 (b) an employee, officer or *agent of the trustee or a *community charity corporation;
for a loss or liability attributable to:
 (c) a deliberate act or omission known by the trustee, director, employee, officer or agent to be a breach of duty; or
 (d) dishonesty of the trustee, director, employee, officer or agent; or
 (e) gross negligence or recklessness of the trustee, director, employee, officer or agent.
Note: An administrative penalty under section 426‑120 or 426-195 in Schedule 1 to the Act cannot be reimbursed from the charity: see subsections 426‑120(4) and 426-195(3) in Schedule 1 to the Act.

Division 3—Operation of a community charity