Section 44: Protection of action taken in good faith

44. Protection of action taken in good faith.___(1) No suit, prosecutions or any other legal proceedings or action in damages shall lie against the directors of the Board, Chairperson, investment managers and employees for anything done or omission in good faith in exercise or performance of any functions, power or duty conferred by or under this Act or any other law for time being in force, unless the act or omission is determined, to have been in bad faith. (2) Chairperson, director of the Board, investment managers, employees, consultants and advisers shall not be sued in their personal capacity for the action bona fidely taken in their official capacity and in case of any such suit, the Fund shall bear expenses of the proceeding till its final conclusion. (3) The Fund shall indemnify each Director of the Board, a former Director or employee of the Fund, or any person who acts or acted at the Fund’s request as a Director or officer of an entity of which the Fund is or was a shareholder or in which the Fund has or had a financial interest against any liability incurred by the person in that capacity unless the liability relates to a failure to act honestly and in good faith.

Effective date: 2023-08-04

Related sections