Section 77A
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 any of the following liabilities incurred as an officer of the first body:

(a) a civil liability;

(b) legal costs incurred in defending or resisting proceedings in which the person is found to have such a liability.

Penalty: 25 penalty units.

(2) For the purposes of subsection (1), the outcome of proceedings is the outcome of the proceedings and any appeal in relation to the proceedings.

Definitions

(3) In this section:

civil liability means a liability to pay a pecuniary penalty under section 76 for a contravention of a provision of Part IV or Part V.

officer has the same meaning as in the Corporations Act 2001.

Amended by Clean Energy Legislation (Carbon Tax Repeal) Act 2014 (Act 83 of 2014)

at end of definition of civil liability in para 77A(2) add 'or Part V'

Inserted by Trade Practices Legislation Amendment Act (No 1) 2006 (Act 131 of 2006)

This provision was inserted as part of the Dawson reforms. Recommendation 10.2.3 stated that corporations should be 'prohibited from indemnifying, directly or indirectly, officers, employees or agents against the imposition of a pecuniary penalty upon an officer, employee or agent'.