Commonwealth Repealed Acts

This legislation has been repealed.

CORPORATIONS LAW- SECT 197

Directors liable for debts and other obligations incurred by corporation as trustee

 
 
(1)
A person who is a director of a corporation
when it incurs a liability while acting, or purporting to act, as trustee, is
liable to discharge the whole or a part of the liability if the corporation:
 
 
 
(a)
has not, and
cannot, discharge the liability or that part of it; and

(b)
is not entitled to be fully indemnified against the liability out
of trust assets. 

 
This is so even if the trust does not have enough assets to
indemnify the trustee. The person is liable both individually and jointly with
the corporation and anyone else who is liable under this subsection.
 
 
(2)
The person is not liable under subsection (1) if the
person would be entitled to have been fully indemnified by 1 of the other
directors against the liability had all the directors of the corporation been
trustees when the liability was incurred.


(3)
This section does not apply to a liability incurred outside
Australia by a foreign company.