Document ID: chunk:federal_register_of_legislation:C2024C00224:section:203eb:p1
Version: federal_register_of_legislation:C2024C00224
Segment Type: section
Provision Reference: s 203EB (pt 1/2)
Character Range: 646270–648961

203EB  Representative bodies registered under the Corporations (Aboriginal and Torres Strait Islander) Act 2006
 (1) This section applies in relation to a representative body that is registered under the Corporations (Aboriginal and Torres Strait Islander) Act 2006.

Power to indemnify officers
 (2) Except as provided in this section, a representative body may indemnify a person who is or has been an officer of the body from any liability incurred by the person as an officer of the body.

Exemptions not allowed
 (3) A representative body, or a subsidiary of a representative body, must not exempt a person (whether directly or through an interposed entity) from a liability to the body incurred as an officer of the body.

When indemnity for liability (other than for legal costs) not allowed
 (4) A representative body, or a subsidiary of a representative body, must not indemnify a person (whether by agreement or by making a payment and whether directly or through an interposed entity) against any of the following liabilities incurred as an officer of the body:
 (a) a liability owed to the body or a subsidiary of the body;
 (b) a liability for:
 (i) a civil penalty order under section 386‑10 of the Corporations (Aboriginal and Torres Strait Islander) Act 2006; or
 (ii) a compensation order under section 386‑15 of that Act;
  made in relation to a breach of subsection 265‑1(1), 265‑5(1) or (2), 265‑10(1) or (2) or 265‑15(1) or (2) of that Act;
 (c) a liability that is owed to someone other than the body or a subsidiary of the body and did not arise out of conduct in good faith.
This subsection does not apply to a liability for legal costs.

When indemnity for legal costs not allowed
 (5) A representative body, or a subsidiary of a representative body, must not indemnify a person (whether by agreement or by making a payment and whether directly or through an interposed entity) against legal costs incurred in defending an action for a liability incurred as an officer of the body if the costs are incurred:
 (a) in defending or resisting a proceedings in which the person is found to have a liability for which they could not be indemnified under subsection (4) of this section; or
 (b) in defending or resisting criminal proceedings in which the person is found guilty; or
 (c) in defending or resisting proceedings brought by the Registrar of Aboriginal and Torres Strait Islander Corporations under section 386‑20 or subsection 386‑55(8) of the Corporations (Aboriginal and Torres Strait Islander) Act 2006 for a court order if the grounds for making the order are found by the court to have been established; or
 (d) in connection with proceedings for relief to