THE CORPORATIONS LAW

CHAPTER 7 - SECURITIES

PART 7.10 - THE NATIONAL GUARANTEE FUND

Division 8 - Claims in respect of insolvent members

SECTION 968   LIMITS OF COMPENSATION  

968(1)  [Total amounts]  

The total amounts paid out of the Fund in connection with claims that:

(a)  because of:

(i) a dealer having become insolvent on a particular day; or

(ii) if 2 or more partners in the same member organisation have become insolvent on a particular day - those partners having become insolvent on that day;

this Division entitles persons to make; and

(b)  are allowed by SEGC;

shall not exceed an amount equal to 14% of the minimum amount of the Fund as at the end of that day.

968(2)  [Amounts recovered to be disregarded]  

In determining, for the purposes of subsection (1), the total of the amounts paid out of the Fund in connection with claims in respect of property:

(a)  an amount paid out of the Fund in connection with any of the claims shall, to the extent to which it is repaid to the Fund, be disregarded; and

(b)  where, by virtue of the exercise of a right or remedy in relation to property that is, or is included in, the first-mentioned property, being a right or remedy of the claimant, or of any of the claimants, to which SEGC is, by virtue of section 980, subrogated, money or other property has been recovered by, or on behalf, of SEGC - so much of the amount, or of the total of the amounts, paid out of the Fund in connection with any of the claims as does not exceed:

(i) the amount of that money; or

(ii) the value of so much (if any) of that other property as has not been, and is not required to be, supplied under subsection 963(2) in respect of any of the claims;

as the case may be, shall be disregarded.

968(3)  [Board may apportion claims]  

In order to ensure compliance with subsection (1) as it applies in relation to particular claims:

(a)  the Board may, in relation to each of those claims, determine in writing an amount to be the maximum amount in relation to the claim; and

(b)  where paragraph (a) empowers the Board to make determinations in relation to the respective claims of 2 or more claimants - the Board shall, in making those determinations:

(i) take into account, in relation to each of those claimants, any money or other property that the claimant has received, or is likely to receive, from sources other than the Fund as compensation for property to which the claimant's claim relates; and

(ii) strive to ensure that the proportion of the property to which a claim relates that is represented by the money and other property received from all sources (including the Fund) as compensation for property to which the claim relates is, as nearly as practicable, the same for each of those claimants.

968(4)  [Amount not to exceed maximum]  

Where a determination of an amount as the maximum amount in relation to a claim is in force under subsection (3), the amount, or the total of the amounts, paid out of the Fund in connection with the claim shall not exceed the first-mentioned amount.

968(5)  [``Claim'']  

In this section, ``claim'' means a claim under this Division.