107Duty of trustee of employer‑sponsored fund to establish procedure for appointing member representatives

#### 107 Duty of trustee of employer‑sponsored fund to establish procedure for appointing member representatives (1) This section applies if the trustee, or the trustees, of a standard employer‑sponsored fund (other than a superannuation fund with no more than 6 members) are required by law: (a) if the trustee is a single corporate trustee—to have member representatives on the board of directors of the trustee; or (b) if there is a group of individual trustees—to have member representatives included in the group; or (c) in any other case—to have member representatives on a policy committee of the fund. (2) Each trustee of the fund must ensure that: (a) rules are established (whether by inclusion in the governing rules or otherwise): (i) setting out a procedure for appointing the member representatives; and (ii) ensuring that member representatives so appointed can only be removed by the same procedure as that by which they were appointed, except in the event of: (A) death; or (B) mental or physical incapacity; or (C) retirement; or (D) termination of employment; or (DA) the member representative no longer meeting one or more of the criteria for fitness and propriety relevant to the member representative set out in the prudential standards; or (E) the member representative becoming a disqualified person within the meaning of Part 15; or (F) suspension or removal under Part 17; or (G) other prescribed circumstances; and (b) those rules are published in such a way as will make members of the fund aware of the procedure for appointment and removal of member representatives. (3) A trustee is guilty of an offence if the trustee contravenes subsection (2). Penalty: 100 penalty units. (4) A trustee is guilty of an offence if the trustee contravenes subsection (2). This is an offence of strict liability. Penalty: 50 penalty units. > Note 1: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility. > Note 2: For strict liability, see section 6.1 of the Criminal Code.