Document ID: chunk:federal_register_of_legislation:F2023C01018:reg:6:p8
Version: federal_register_of_legislation:F2023C01018
Segment Type: reg
Provision Reference: reg 6 (pt 8/15)
Character Range: 48790–51646

set out in section 45.25.

45.105  Protection 1
 (1) A responsible entity meets this protection if the responsible entity, in the exercise of the responsible entity's duties, relies on information, including professional or expert advice, in good faith, and after the responsible entity has made an independent assessment of the information, if that information has been given by:
 (a) an employee of the registered entity that the responsible entity believes on reasonable grounds to be reliable and competent in relation to the matters concerned; or
 (b) a professional adviser or expert in relation to matters that the responsible entity believes on reasonable grounds to be within the individual's professional or expert competence; or
 (c) another responsible entity in relation to matters within their authority or area of responsibility; or
 (d) an authorised committee of responsible entities that does not include the responsible entity.
 (2) In determining whether the responsible entity has made an independent assessment of the information or advice, regard must be had to the responsible entity's knowledge of the registered entity and the complexity of the structure and operations of the registered entity.

45.110  Protection 2
 (1) A responsible entity meets this protection if the responsible entity makes a decision in relation to the registered entity, and the responsible entity meets all of the following:
 (a) the responsible entity makes the decision in good faith for a proper purpose;
 (b) the responsible entity does not have a material personal interest in the subject matter of the decision;
 (c) the responsible entity informs itself about the subject matter of the decision, to the extent the entity reasonably believes to be appropriate;
 (d) the responsible entity rationally believes that the decision is in the best interests of the registered entity.
Note 1: Protection 2 is also referred to as the "business judgement rule".
Note 2: Protection 2 relates to the duty mentioned in paragraph 45.25(2)(a).
 (2) In this section:
decision means any decision to take, or not take, action in relation to a matter relevant to the operations of the registered entity.

45.115  Protection 3
  A responsible entity meets this protection if:
 (a) at the time when the debt was incurred, the responsible entity had reasonable grounds to expect, and did expect, that the registered entity was solvent at that time and would remain solvent even if it incurred that debt and any other debts that it incurred at that time; or
 (b) the responsible entity took all reasonable steps to prevent the registered entity from incurring the debt.
Note: Protection 3 relates to the duty mentioned in paragraph 45.25(2)(g).

45.120  Protection 4
  This section is satisfied if, because of illness or for some other good reason, a responsible entity