310 Provisions exempting officers and auditors from liability.E+W+S
(1)This section applies to any provision, whether contained in a company’s articles or in any contract with the company or otherwise, for exempting any officer of the company or any person (whether an officer or not) employed by the company as auditor from, or indemnifying him against, any liability which by virtue of any rule of law would otherwise attach to him in respect of any negligence, default, breach of duty or breach of trust of which he may be guilty in relation to the company.
(2)Except as provided by the following subsection, any such provision is void.
[F1(3)This section does not prevent a company—
(a)from purchasing and maintaining for any such officer or auditor insurance against any such liability, or
(b)from indemnifying any such officer or auditor against any liability incurred by him—
(i)in defending any proceedings (whether civil or criminal) in which judgment is given in his favour or he is acquitted, or
(ii)in connection with any application under section 144(3) or (4) (acquisition of shares by innocent nominee) or section 727 (general power to grant relief in case of honest and reasonable conduct) in which relief is granted to him by the court.]
Textual Amendments
F1S. 310(3) substituted by Companies Act 1989 (c. 40, SIF 27), ss. 137(1), 213(2)