New South Wales Consolidated Acts

SECONDARY MORTGAGE MARKET (STATE EQUITY PARTICIPATION) ACT 1985 - SECT 6

6 Appointment of directors on behalf of the Crown etc

(1) Where, by virtue of being the holder of shares in the Company, the Crown or a prescribed statutory corporation is entitled to appoint a director of the Company, such an appointment is not effective until approved by the Minister.

(2) The fact that any director appointed as referred to in subsection (1) may act in accordance with the directions or instructions of the Minister does not make the Minister a director of the Company.

(3) Where:

(a) any person employed in the service of the Crown or of a prescribed statutory corporation becomes a director of the Company, and

(b) the appointment of that person is directly or indirectly attributable to the fact that the Crown or a prescribed statutory corporation is a holder of shares in the Company,

the Crown or statutory corporation is liable to indemnify that person against any liability which by law attaches to that person in his or her capacity as a director of the Company in respect of any act done or omitted to be done in good faith by that person in relation to the Company.