Document ID: chunk:federal_register_of_legislation:C2004A03231:body:0:p39
Version: federal_register_of_legislation:C2004A03231
Segment Type: other
Provision Reference: 
Character Range: 97033–99802

Penalty: $1,000.".

Vacation of office
65. Section 222 of the Principal Act is amended—
     (a) by omitting from paragraph (1) (e) "or";
     (b) by omitting paragraph (1) (f) and substituting the following paragraphs:
        "(f) he becomes subject to a section 562 order; or
         (g) he becomes subject to a section 562a notice."; and
     (c) by inserting after sub-section (4a) the following sub-section:
    "(4b) A person whose office is vacated by reason of paragraph (1) (g) is incapable, without the leave of the Court, of being re-appointed as a director until the expiration of the period specified in the notice referred to in that paragraph.".

66. After section 229 of the Principal Act the following section is inserted:

Liability of directors for debts, &c., incurred by corporation acting as trustee
"229a. (1) Where—
(a) a relevant corporation, while acting or purporting to act in a capacity of trustee of a trust, incurs a liability—
         (i) in the case of a company—whether within or outside Australia;
         (ii) in the case of a registered overseas foreign company—within Australia; or

         (iii) in the case of a foreign company that is neither a registered overseas foreign company nor a recognised foreign company—within the Territory; and
     (b) the relevant corporation is for any reason not entitled to be fully indemnified out of the assets of the trust in respect of the liability,
the relevant corporation and the persons who were directors of the relevant corporation at the time when the liability was incurred and were not innocent directors in relation to the incurring of the liability are jointly and severally liable to discharge the liability.
"(2) For the purposes of this section, a trustee of a trust shall not, by reason only that—
     (a) the trust has no assets; or
     (b) the assets of the trust are insufficient to indemnify the trustee in respect of the liability concerned,
be taken not to be entitled to be fully indemnified out of the assets of the trust in respect of a liability.
"(3) In this section—
     'Australia' includes the external Territories;
     'innocent director', in relation to the incurring of a liability by a relevant corporation while acting or purporting to act in a capacity of trustee of a trust, means a person who—
         (a) was a director of the relevant corporation at the time when the liability was incurred; and
         (b) if the persons who were directors of the relevant corporation at that time had been at that time the trustees of the trust and had incurred the liability, would have been entitled to be fully indemnified in respect of the liability by one or more of the other trustees;
     'liability' means a debt, liability or other obligation;