(1) The responsible entity of a registered scheme is to operate the scheme and
perform the functions conferred on it by the scheme's constitution and this
Act.
(2) The responsible entity has power to appoint an agent, or otherwise engage
a person, to do anything that it is authorised to do in connection with the
scheme. For the purpose of determining whether:
- (a)
- there is a liability to
the members; or
- (b)
- the responsible entity has properly performed its duties for the purposes
of subsection 601GA(2);
the responsible entity is taken to have done (or failed to do) anything that
the agent or person has done (or failed to do) because of the appointment or
engagement, even if they were acting fraudulently or outside the scope of
their authority or engagement.
- Note: A scheme's constitution may provide for the responsible entity to be
indemnified for liabilities-see subsection 601GA(2).
(3) An agent appointed, or a person otherwise engaged, by:
- (a)
- the agent or
person referred to in subsection (2); or
- (b)
- a person who is taken under this subsection to be an agent of the
responsible entity;
to do anything that the responsible entity is authorised to do in connection
with the scheme is taken to be an agent appointed by the responsible entity to
do that thing for the purposes of subsection (2).
(4) If:
- (a)
- an agent holds scheme property on behalf of the
responsible entity; and
- (b)
- the agent is liable to indemnify the responsible entity against any loss
or damage that:
- (i)
- the responsible entity suffers as a result of a wrongful or negligent act
or omission of the agent; and
- (ii)
- relates to a failure by the responsible entity to perform its duties in
relation to the scheme;
any amount recovered under the indemnity forms part of the scheme property.
Commonwealth Numbered Acts