PART 4Protected Cell Companies
CHAPTER 11Debentures (debt securities)
Liability of trustees of debentures153
1
A provision contained in—
a
a trust deed for securing an issue of debentures by a protected cell company; or
b
any contract with the holders of debentures issued by a protected cell company, secured by a trust deed,
is void insofar as it would have the effect of exempting a trustee (“T”) of the deed from, or indemnifying T against, liability for breach of trust where T fails to show the degree of care and diligence required of T as trustee, having regard to the provisions of the trust deed conferring on T any powers, authorities or discretions.
2
Paragraph (1) does not invalidate—
a
a release otherwise validly given in respect of anything done or omitted to be done by T before the giving of the release;
b
any provision enabling such a release to be given—
i
on being agreed to by a majority of not less than 75% in value of the debenture holders present and voting in person or, where proxies are permitted, by proxy at a meeting summoned for the purpose; and
ii
either with respect to specific acts or omissions or on the trustee dying or ceasing to act.