Document ID: chunk:federal_register_of_legislation:C2025C00134:section:52a:p2
Version: federal_register_of_legislation:C2025C00134
Segment Type: section
Provision Reference: s 52A (pt 2/2)
Character Range: 380708–382682

or exercising the corporate trustee's functions and powers as trustee of the entity;
 (f) 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 52.

Payments to third parties must be in best financial interests of beneficiaries
 (2A) To avoid doubt, the obligations of the director under paragraph (2)(c) apply in respect of payments to a third party by, or on behalf of, the entity.

Obligations to beneficiaries override obligations under certain other Acts
 (3) The obligations of the director under paragraph (2)(d) override any conflicting obligations the director has under:
 (a) Part 2D.1 of the Corporations Act 2001; or
 (b) Subdivision A of Division 3 of Part 2‑2 of the Public Governance, Performance and Accountability Act 2013 (which deals with general duties of officials) or any rules made for the purposes of that Subdivision.

Director not prevented from engaging or authorising persons to act on behalf of the trustee
 (4) A covenant referred to in paragraph (2)(e) does not prevent the director from engaging or authorising persons to do acts or things on behalf of the trustee.

Using reasonable care and diligence to ensure compliance by corporate trustee
 (5) The reference in paragraph (2)(f) to a reasonable degree of care and diligence is a reference to the degree of care and diligence that a superannuation entity director would exercise in the circumstances of the corporate trustee.

Covenants operate as if director party to the governing rules
 (6) A covenant referred to in subsection (2) operates as if the director were a party to the governing rules.

Superannuation entity director
 (7) A superannuation entity director is a person whose profession, business or employment is or includes acting as director of a corporate trustee of a superannuation entity and investing money on behalf of beneficiaries of the superannuation entity.