WORKERS COMPENSATION REGULATION 2003 - REG 241 Directors under trustee duty

This legislation has been repealed.

WORKERS COMPENSATION REGULATION 2003 - REG 241

241 Directors under trustee duty

(1) A managed fund insurer must comply with the directions of the Nominal Insurer as to the payment of money by the insurer to or from the Insurance Fund in connection with the exercise of the insurer's functions as a temporary agent.

(1A) GIO General Limited must comply with the directions of the Nominal Insurer as to the payment of money by GIO General Limited to or from the Insurance Fund in connection with the exercise of its functions as a temporary agent.

(2) A director of a company that is a managed fund insurer or GIO General Limited is under the same liability, in the event of a contravention of such a direction, as the director would be if:

(a) the director had been a trustee under a trust for the execution of the direction, and

(b) the Authority and the appropriate policy holders had been beneficiaries of such a trust.

(3) This clause does not apply if the director proves that:

(a) the contravention occurred without the knowledge of the director, or

(b) the director was not in a position to influence the conduct of the insurer or GIO General Limited (as the case requires) in relation to the contravention, or

(c) the director, being in such a position, used all due diligence to prevent the contravention.

(4) The Authority may institute proceedings under this clause on behalf of the Authority and the appropriate policy holders.

(5) In this clause a reference to a director of a company includes any person who, for the purposes of the Corporations Act 2001 of the Commonwealth, is deemed to be a director of the company.