60Trustees’ indemnity and liability

1. Subject to this section, a trustee of a consumer trust is indemnified from the trust property for—

2. costs and damages for any civil liability arising from any action brought by a third party if the trustee was acting in good faith and in the performance (or intended performance) of the trustee’s roles and responsibilities; and
3. costs arising from any successfully defended criminal action relating to acts or omissions in their capacity as a trustee.

4. The trustees of a consumer trust are jointly and severally liable for losses incurred by trust property if 1 or more trustees—

5. unlawfully expend money; or
6. unlawfully sell or otherwise dispose of assets; or
7. intentionally or negligently fail to collect money owed.

8. Any loss under subsection (2) is recoverable as a debt due to the Crown in any court of competent jurisdiction.

9. In proceedings by the Crown to recover a loss from the trustees, it is a defence if a trustee proves that the act or failure to act resulting in the loss occurred—

10. without the trustee’s knowledge; or
11. with the trustee’s knowledge but against the trustee's protest made at or before the time when the loss occurred; or
12. contrary to the manner in which the trustee voted on the issue at a meeting of the trustees of the consumer trust; or
13. in circumstances where, although being a party to the act or failure to act, the trustee acted in good faith and reasonably in reliance on reports, statements, financial data, or other information prepared or supplied, or on professional or expert advice given, by any of the following persons:
    1. an employee of the consumer trust, or of the water organisation owned or co-owned by the trust, whom the trustee believed on reasonable grounds to be reliable and competent in relation to the matters concerned:
    2. a professional adviser or expert in relation to matters that the trustee believed on reasonable grounds to be within the person’s professional or expert competence.

14. A trustee cannot rely on a defence under subsection (4) if the court finds, or to the extent that the court finds, that the loss occurred as a result of the trustee’s dishonesty, wilful misconduct, or gross negligence.

15. If the court finds that the loss was incurred by any action by the trustees referred to in subsection (2), the trustees must, by order of the court, pay costs and other expenses arising out of the proceedings.

16. The Crown must return any amount it recovers from the trustees, less costs and other expenses it incurred in the recovery, to the trust property.