22BIndemnities and exemptions by corporate Commonwealth entities

#### 22B Indemnities and exemptions by corporate Commonwealth entities Guide to this section The purpose of this section is to prescribe requirements relating to the granting of indemnities and exemptions by corporate Commonwealth entities. It provides that in certain circumstances corporate Commonwealth entities are not allowed to give indemnities. It also provides that corporate Commonwealth entities are not allowed to grant exemptions to persons for liabilities incurred as officials of the entity. This section is made for section 61 and paragraphs 102(1)(a), (b) and (d) of the Act. When indemnity for liability (other than for legal costs) not allowed (1) A corporate Commonwealth entity, or a subsidiary of a corporate Commonwealth entity, 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 official of the entity: (a) a liability to pay a pecuniary penalty for the contravention of a law of the Commonwealth, a State or a Territory; (b) a liability to pay a pecuniary penalty for an offence against a law of the Commonwealth, a State or a Territory; (c) a liability arising out of conduct that was not in good faith and is owed to someone other than: (i) the entity; or (ii) a subsidiary of the entity; (d) a liability to the entity or a subsidiary of the entity. This subsection does not apply to a liability for legal costs. When indemnity for legal costs not allowed (2) A corporate Commonwealth entity, or a subsidiary of a corporate Commonwealth entity, must not indemnify a person (whether by agreement or by making a payment and whether directly or through an interposed entity) against legal costs incurred in defending an action for a liability incurred as an official of the entity if the costs are incurred: (a) in defending or resisting proceedings in which an outcome is that the person is found to have a liability for which they could not be indemnified under subsection (1); or (b) in defending or resisting criminal proceedings in which an outcome is that the person is found guilty. (3) For the purposes of subsection (2), an outcome of proceedings includes the outcome of any appeal in relation to the proceedings. Exemptions not allowed (4) A corporate Commonwealth entity, or a subsidiary of a corporate Commonwealth entity, must not exempt a person (whether directly or through an interposed entity) from a liability to the entity incurred as an official of the entity.