Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) A director of a life company has a duty to the owners of policies referable to a statutory fund of the company.
(2) The director's duty is a duty to take reasonable care, and use due diligence, to see that, in the investment, administration and management of the assets of the fund, the life company:
(a) complies with this Part; and
(b) gives priority to the interests of owners and prospective owners of policies referable to the fund.
(3) In order to avoid doubt, it is declared that, in the event of conflict between the interests of owners and prospective owners of policies referable to a statutory fund and the interests of shareholders of a life company, a director's duty is to take reasonable care, and use due diligence, to see that the company gives priority to the interests of owners and prospective owners of those policies over the interests of shareholders.
(4) A reference in subsection (2) or (3) to the interests of owners of policies referable to a statutory fund is a reference to the interests of such persons viewed as a group.
(5) A director of a life company does not commit a breach of duty because of the doing of an act by the company if the company is permitted by this Part to do the act.
(6) If:
(a) in respect of any act or omission of a life company, a director of the company is guilty of a breach of the duty imposed by subsection (1); and
(b) the act or omission of the company results in a loss to a statutory fund of the company;
the director is liable to pay the company an amount equal to the amount of the loss.
(7) If 2 or more persons are liable under subsection (6) in relation to the same act or omission, the liability of those persons is joint and several.
(8) An action under subsection (6) may be brought:
(a) by the company; or
(b) with the written approval of APRA, by the owner of a policy referable to the statutory fund involved.
(9) An approval under subsection (8) may be given subject to conditions relating to the persons, or the number of persons, who may join in the action as plaintiffs.
(10) A person cannot be made liable both under this section and under section 50 in respect of the same act or omission of a life company.