91Indemnification and exemption of governing board

91 Indemnification and exemption of governing board members (1) A territory authority must not exempt a governing board member (whether directly or through another entity) from liability to the (2) A territory authority must not indemnify a governing board member (whether directly or through another entity and whether by agreement or by making a payment) against any of the following liabilities incurred as a board member: (a) a liability owed to the authority; (b) a liability owed to someone other than the authority that did not arise from honest conduct.

(3) A territory authority must not indemnify a governing board member (whether directly or through another entity and whether by agreement or by making a payment) against legal costs incurred as a member if the costs are incurred— (a) in defending or resisting a proceeding if the person is found to have a liability for which the person could not be indemnified under subsection (2); or Note A governing board member is not personally liable for certain acts done or omissions made honestly and without recklessness (see s 90). (b) in defending or resisting a criminal proceeding in which the person is found guilty. authority includes a subsidiary (if any) of the authority.