THE CORPORATIONS LAW

CHAPTER 7 - SECURITIES

PART 7.6 - MONEY AND SCRIP OF DEALERS' CLIENTS

SECTION 878   POWER OF COURT TO MAKE ORDER RELATING TO PAYMENT OF MONEY  

878(1)  [Court may direct payment of money]  

An order made under section 877 may include directions to the person to whom the money is paid directing that the person:

(a)  shall pay the money into a separate trust account;

(b)  is authorised to prepare a scheme for distributing the money to persons who claim, within 6 months after the person receives the money, to be entitled to the money and satisfy the person that they are so entitled; or

(c)  where the money received is insufficient to pay all proved claims, may, notwithstanding any rule of law or equity to the contrary, apportion the money among the claimants in proportion to their proved claims and show in the scheme how the money is so apportioned.

878(2)  [Court approval of distribution scheme]  

Where a person prepares a scheme for a distribution of money under subsection (1), the person shall apply to the Court for approval of the scheme and for directions in respect of it.

878(3)  [Money in separate trust account]  

The Court may give such directions as to the money held in a separate trust account under subsection (1), as to the persons to whom and in what amounts the whole or any portion of that money shall be paid, and as to the payment of the balance of the money (if any) remaining in the account, as the Court thinks fit.