Corporations Regulations 2001

CHAPTER 10 - REPEALS, TRANSITIONAL MATTERS AND APPLICATION PROVISIONS  

PART 10.2 - TRANSITIONAL ARRANGEMENTS RELATING TO FINANCIAL SERVICES REFORM LEGISLATION  

Division 20 - Rules for dealing with liability during transition period  

REGULATION 10.2.104   OPERATION OF REGULATIONS 10.2.102 AND 10.2.103  

10.2.104(1)   [ Different rights or remedies to different clients]  

Subject to subregulations (2) and (3), and without limiting any right or liability of a person (the client ), if the effect of regulations 10.2.102 and 10.2.103 is that different rights or remedies are available to different clients in relation to conduct during the transition period:

(a) to the extent that the rights or remedies available to a client against a responsible person are identical, or substantially identical, to some or all of the rights or remedies available against another responsible person for the same or related conduct, each responsible person is taken to be jointly and severally liable as between the responsible person and the client in respect of the client's exercise of the right, or in respect of the provision of the remedy, to the extent that the law makes them liable; and

(b) to the extent that the rights or remedies available to a client against different responsible persons in respect of conduct are not identical or substantially identical, a client who may exercise a right or obtain a remedy against a responsible person is entitled to exercise the right or obtain the remedy:

(i) under each law applicable at the time the conduct is engaged in; and

(ii) against each responsible person against whom the right may be exercised or the remedy obtained.

Example

If, as a result of the same conduct, Person A is liable to a client in respect of an amount of money ($X), and Person B is also liable in respect of an amount of money ($X + $Y), both of them will be jointly and severally liable for $X, but only Person B will be liable to pay $Y.

10.2.104(2)   [ Limitation]  

Subregulation (1) does not have the effect that:

(a) a particular person is liable more than once in relation to the conduct in respect of the same or a similar remedy; or

(b) a person is entitled to recover more than the amount of any loss or damage that the person has suffered in relation to the conduct.

10.2.104(3)   [ Liability of person in relation to own conduct]  

Nothing in this Division is intended to reduce or otherwise affect the liability of any person in relation to the person's own conduct, whether or not:

(a) the person is a principal or a representative; and

(b) the person is authorised to do a particular thing under any licence, registration, authorisation or other authority.

10.2.104(4)   [ Liability of principal acting under old legislation]  

Nothing in this Division is intended to reduce or otherwise affect the liability of a principal that acts under a provision of the relevant old legislation.

10.2.104(5)   [ Liability for offences, criminal or civil penalties]  

Nothing in this Division is intended to reduce or otherwise affect the liability of a person for:

(a) any offence imposed by any law; or

(b) any other criminal or civil penalty imposed under any law.