97Indemnifying accountable entities

97 Indemnifying accountable entities

(1) A significant related entity of an accountable entity must not (whether by agreement or by making a payment, and whether directly or through an interposed entity): (a) indemnify the accountable entity against the consequences of breaching an obligation under this Act; or (b) pay, or agree to pay, a premium for a contract insuring the accountable entity against the consequences of breaching an obligation under this Act. (2) Subsection (1) does not apply to a liability for legal costs. (3) Anything that purports to indemnify or insure a person against a liability, or exempt them from a liability, is void to the extent that it contravenes subsection (1). (4) Without prejudice to their effect apart from this subsection: (a) subsection (1) applies to a related body corporate (other than a significant related entity) of an accountable entity in the same way as it applies to a significant related entity of the accountable entity; and (b) subsections (2) and (3) have effect accordingly.