199Insurance premiums for certain liabilities of director, secretary, other officer or auditor

199 Insurance premiums for certain liabilities of director, secretary, other officer or auditor

199 Insurance premiums for certain liabilities of director, secretary, other officer or auditor

(cf Corporations Act s 199B)

(1) A co-operative or a related corporation must not pay, or agree to pay, a premium for a contract insuring a person who is, or has been, an officer or auditor of the co-operative against a liability (other than one for legal costs) arising out of conduct involving a wilful breach of duty in relation to the co-operative.

Maximum penalty—$500.

(2) This section applies to a premium whether it is paid directly or through an interposed entity.

(3) An offence based on subsection (1) is an offence of strict liability.