Part IX A Company’s Management; Directors and Secretaries; their Qualifications, Duties and Responsibilities
Other provisions about directors and officers
309AProvisions protecting directors from liability
1
This section applies in relation to any liability attaching to a director of a company in connection with any negligence, default, breach of duty or breach of trust by him in relation to the company.
2
Any provision which purports to exempt (to any extent) a director of a company from any liability within subsection (1) is void.
3
Any provision by which a company directly or indirectly provides (to any extent) an indemnity for a director of—
a
the company, or
b
an associated company,
against any liability within subsection (1) is void
This is subject to subsections (4) and (5).
4
Subsection (3) does not apply to a qualifying third party indemnity provision (see section 309B(1)).
5
Subsection (3) does not prevent a company from purchasing and maintaining for a director of—
a
the company, or
b
an associated company,
insurance against any liability within subsection (1).
6
In this section—
“associated company”, in relation to a company (“C”), means a company which is C’s subsidiary, or C’s holding company or a subsidiary of C’s holding company;
“provision” means a provision of any nature, whether or not it is contained in a company’s articles or in any contract with a company.