sec.37ALiability of Corporation and directors for debts incurred when acting as trustee

### sec.37A Liability of Corporation and directors for debts incurred when acting as trustee Where— the Corporation while acting or purporting to act in the capacity of trustee of a trust, incurs a liability, whether in Australia or overseas; and the Corporation is for any reason not entitled to be fully indemnified out of the assets of the trust in respect of the liability; and the Corporation has not discharged, and is unable to discharge, the liability or a part of the liability out of its own funds; the State is to discharge the relevant liability or relevant part of the liability and may recover the amount paid by the State and any loss or damage suffered by the State as a result of that discharge from the persons who were directors of the Corporation when the liability was incurred and were not innocent directors in relation to the incurring of the liability, which persons are jointly and severally liable to the State for that amount and such loss or damage, without prejudice to the operation of section 42 . In this section, a reference to an innocent director means a person who— was a director at the time when the liability was incurred; and if the persons who were directors at that time had been at that time the trustees of the relevant trust and had incurred the liability, would have been entitled to be fully indemnified in respect of the liability by 1 or more of the other trustees. s 37A (prev s 28) renum and reloc 2007 No. 10 s 62 sch (sec.37A-ssec.1) Where— the Corporation while acting or purporting to act in the capacity of trustee of a trust, incurs a liability, whether in Australia or overseas; and the Corporation is for any reason not entitled to be fully indemnified out of the assets of the trust in respect of the liability; and the Corporation has not discharged, and is unable to discharge, the liability or a part of the liability out of its own funds; the State is to discharge the relevant liability or relevant part of the liability and may recover the amount paid by the State and any loss or damage suffered by the State as a result of that discharge from the persons who were directors of the Corporation when the liability was incurred and were not innocent directors in relation to the incurring of the liability, which persons are jointly and severally liable to the State for that amount and such loss or damage, without prejudice to the operation of section 42 . (sec.37A-ssec.2) In this section, a reference to an innocent director means a person who— was a director at the time when the liability was incurred; and if the persons who were directors at that time had been at that time the trustees of the relevant trust and had incurred the liability, would have been entitled to be fully indemnified in respect of the liability by 1 or more of the other trustees. - (a) the Corporation while acting or purporting to act in the capacity of trustee of a trust, incurs a liability, whether in Australia or overseas; and - (b) the Corporation is for any reason not entitled to be fully indemnified out of the assets of the trust in respect of the liability; and - (c) the Corporation has not discharged, and is unable to discharge, the liability or a part of the liability out of its own funds; - (a) was a director at the time when the liability was incurred; and - (b) if the persons who were directors at that time had been at that time the trustees of the relevant trust and had incurred the liability, would have been entitled to be fully indemnified in respect of the liability by 1 or more of the other trustees.