| 1) | Subject to the provisions of this section, any provision contained in a trust deed for securing an issue of debentures, or in any contract with the holders of debentures secured by a trust deed, shall be void in so far as it would have the effect of exempting a trustee thereof from or indemnifying him against liability for breach of trust where he fails to show the degree of care and diligence required of him as trustee, having regard to the provisions of the trust deed conferring on him any powers, authorities or discretions. |
| 2) | The provisions of subsection (1) shall not have the effect of- |
| a) | invalidating 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 any provision enabling such a release to be given- |
| i) | with the consent of a majority of not less than three-fourths in value of the debenture-holders present and voting 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 dying or ceasing to act; or |
| b) | invalidating any provision in force on the first day of January, 1953, so long as any person then entitled to the benefit of that provision or who is afterwards given the benefit thereof under subsection (3) remains a trustee under the relevant deed; or |
| c) | depriving any person of any exemption or right to be indemnified in respect of anything done or omitted to be done by him while any provision referred to in paragraph (b) was in force. |
| 3) | So long as any trustee under a trust deed remains entitled to the benefit of a provision saved by subsection (2)(b) or (c) the benefit of that provision may be given either— |
| a) | to all trustees under the deed, present and future; or |
| b) | to any named trustee or proposed trustee thereunder, |
by a resolution passed by a majority of not less than three-fourths in value of the debenture holders present in person or by proxy at a meeting summoned for the purpose in accordance with the provisions of the deed or, if the deed makes no provision for summoning meetings at a meeting summoned for the purpose in any manner approved by the Court.
