ACT 125

COMPANIES ACT 1965 (REVISED - 1973)

PART IV - SHARES, DEBENTURES AND CHARGES

DIVISION 5 - INTERESTS OTHER THAN SHARES, DEBENTURES, ETC.

Section 97. Liability of trustees.

(1) Subject to this section, any provision contained in a deed that is or at any time has been an approved deed, or in any contract with the holders of interests to which such a deed relates, shall be void so far as it would have the effect of exempting a trustee or representative under the deed from, or indemnifying a trustee or representative against, liability for breach of trust where the trustee or representative fails to show the degree of care and diligence required of a trustee or representative. (2) Subsection (1) shall not invalidate— (a) any release otherwise validly given in respect of anything done or omitted to be done by a trustee or representative before the giving of the release; or (b) any provision enabling such a release to be given— (i) on the agreement thereto of a majority of not less than three-fourths of the holders of interests as vote in person or by proxy at a meeting summoned for the purpose; and (ii) either with respect to specific acts or omissions or on the trustee or representative ceasing to act.