Indemnification of officers
(1) A body corporate (the first body), or a body corporate related to the first body, must not indemnify a person (whether by agreement or by making a payment and whether directly or through an interposed entity) against either of the following liabilities if the person incurred them as an officer of the first body—
(a) a liability to pay a pecuniary penalty under section 498AD;
(b) legal costs incurred in defending or otherwise being a party to any proceeding in which the person is found to have such a liability.
Penalty: 30 penalty units.
(2) For the purposes of subsection (1)(b), the outcome of a proceeding includes any appeal in relation to the proceeding.
(3) Anything that purports to indemnify a person against a liability is void to the extent that it contravenes this section. (4) In this section— officer has the same meaning as in the Corporations Act.
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