CCH Note:
Part 13 of the
Corporations Act 1989, inserted
by sec 6 of No 110 of 1990, Sch 1 (effective 1 January 1991), begins as
follows:
PART 13 - THE CORPORATIONS LAW
THE CORPORATIONS LAW
82
The Corporations Law is as follows:...
CHAPTER 7 - SECURITIES
PART 7.4 - CONDUCT OF SECURITIES BUSINESS
Division 1 - Regulation of certain activities
SECTION 842
ISSUE OF CONTRACT NOTES
842(1)
(Application of section)
This section applies:
(a)
in relation to a dealer (other than an exempt dealer) in relation to a transaction of sale or purchase of securities; or
(b)
in relation to an exempt dealer, in relation to a transaction of sale or purchase of securities that is entered into in the course of a securities business that the exempt dealer carries on in the capacity of personal representative of a dead dealer.
History
S 842(1) substituted by No 110 of 1990, Sch 1 (effective 18 December 1990).
842(2)
(Persons to whom contract notes to be given)
A dealer shall, in respect of a transaction of sale or purchase of securities, immediately give a contract note that complies with subsection
(3) to:
(a)
where the transaction took place in the ordinary course of business on a stock market and the dealer entered into the transaction otherwise than as principal - the person for whom the dealer entered into the transaction;
(b)
where the transaction did not take place in the ordinary course of business on a stock market and the dealer entered into the transaction otherwise than as principal - the person for whom the dealer entered into the transaction and the person with whom the dealer entered into the transaction; and
(c)
where the transaction did not take place in the ordinary course of business on a stock market and the dealer entered into the transaction as principal - the person with whom the dealer entered into the transaction.
842(3)
(Contents of contract note)
A contract note given by a dealer under subsection
(2) shall specify:
(a)
the name or style under which the dealer carries on business as a dealer and the address of the principal place at which the dealer so carries on business;
(b)
each securities exchange (if any) of which the dealer is a member;
(c)
if the dealer is dealing as principal with a person who is not the holder of a dealers licence - that the dealer is so dealing;
(d)
the name of the person to whom the dealer gives the contract note;
(e)
the day on which the transaction took place and, if the transaction did not take place in the ordinary course of business on a stock market, a statement to that effect;
(f)
the number, or amount and description, of the securities that are the subject of the contract;
(g)
the price per unit of the securities;
(h)
the amount of the consideration;
(j)
the amount of commission charged;
(k)
the amounts of all stamp duties or other duties and taxes payable in connection with the contract; and
(m)
if an amount is to be added to, or deducted from, the settlement amount in respect of the right to a benefit bought or sold together with the securities - the first-mentioned amount and the nature of the benefit.
842(4)
(Name of person)
A dealer shall not include in a contract note given under subsection (2), as the name of the person with or for whom the dealer has entered into the transaction, a name that the dealer knows, or could reasonably be expected to know, is not the name by which that person is ordinarily known.
842(5)
(Acting as principal)
A reference in this section to a dealer dealing, or entering into a transaction, as principal includes a reference to a person:
(a)
dealing or entering into a transaction on behalf of an associate of the dealer;
(b)
dealing in securities on behalf of a body corporate in which the dealer has a controlling interest; or
(c)
where the dealer carries on business as a dealer in partnership - dealing in securities on behalf of a body corporate in which the dealer's interest and the interests of the dealer's partners together constitute a controlling interest.
842(6)
(Explanation of concepts)
For the purposes of this section:
(a)
a dealer who is a member of a securities exchange shall not be taken to have entered into a transaction as principal merely because the transaction was entered into with another dealer who is a member of a securities exchange; and
(b)
a transaction takes place in the ordinary course of business on a stock market if it takes place in prescribed circumstances or is a transaction that is a prescribed transaction for the purposes of this section.
842(7)
[Circumstances when not associate]
Despite
Division 2 of Part 1.2, a person is not an associate of another person for the purposes of this section merely because the first-mentioned person is:
(a)
a partner of the other person otherwise than because the first-mentioned person carries on a business of dealing in securities in partnership with the other person; or
(b)
a director of a body corporate of which the other person is also a director, whether or not the body corporate carries on a business of dealing in securities.