Section 25
Liability of trustees
Subject to this section, any provision contained—
Interest Schemes
33
(a)
in a trust deed or a contractual agreement that is or at any time has been approved by the Registrar; or
(b)
in any contract with the interest holders to which such a trust deed or contractual agreement relates, shall be void so far as it would have the effect of exempting a trustee under the trust deed or contractual agreement from, or indemnifying a trustee against, liability for breach of trust where the trustee fails to show the degree of care and diligence required of a trustee.
(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 before the giving of the release; or
(b)
any provision enabling such a release to be given—
(i)
on the approval of a majority of not less than seventy-five per centum of the interest holders to vote in person or by proxy at a meeting summoned for the purpose; and
(ii)
with respect to specific acts or omissions or on the trustee ceasing to act.