The Open-Ended Investment Companies (Investment Companies with Variable Capital) Regulations 1996

Exemptions from liability to be void

56.—(1) This regulation applies to any provision, whether contained in the instrument of incorporation of an investment company with variable capital or in any contract with the company or otherwise—

(a) which exempts any officer of the company or any person (whether or not an officer of the company) employed by the company as auditor from, or indemnifies him against, any liability which by virtue of any rule of law would otherwise attach to him in respect of any negligence, default, breach of duty or breach of trust of which he may be guilty in relation to the company; or

(b) which exempts the depositary of the company from, or indemnifies him against, any liability for any failure to exercise due care and diligence in the discharge of his functions in respect of the company.

(2) Except as provided by the following paragraph, any such provision is void.

(3) This regulation does not prevent a company—

(a) from purchasing and maintaining for any such officer, auditor or depositary insurance against any such liability; or

(b) from indemnifying any such officer, auditor or depositary against any liability incurred by him—

(i) in defending any proceedings (whether civil or criminal) in which judgment is given in his favour or he is acquitted; or

(ii) in connection with any application under regulation 57 below in which relief is granted to him by the court.