THE CORPORATIONS LAW

CHAPTER 7 - SECURITIES

PART 7.14 - MISCELLANEOUS

SECTION 1114   POWER OF COURT TO MAKE CERTAIN ORDERS  

1114(1)  (Court's powers)  

Where:

(a)  on the application of the Commission, it appears to the Court that a person:

(i) has contravened this Chapter, or any other law relating to trading or dealing in securities;

(ii) has contravened the conditions or restrictions of a licence, the business rules or listing rules of a securities exchange, or the SCH business rules; or

(iii) is about to do an act with respect to trading or dealing in securities that, if done, would be such a contravention; or

(b)  on the application of a securities exchange, it appears to the Court that a person has contravened the business rules or listing rules of the securities exchange; or

(ba)  on the application of the securities clearing house, it appears to the Court that a person has contravened the SCH business rules; or

(bb)  on the application of a person claiming to be aggrieved by an alleged contravention by another person of the business rules or listing rules of a securities exchange, it appears to the Court that:

(i) the other person did contravene those rules; and

(ii) the applicant is aggrieved by the contravention;

the Court may make such order or orders as it thinks fit, including, but without limiting the generality of the foregoing, one or more of the following orders:

(c)  in the case of persistent or continuing contraventions of this Chapter, or of any other law relating to trading or dealing in securities, of the conditions or restrictions of a licence, of the business rules or listing rules of a securities exchange, or of the SCH business rules - an order restraining a person from carrying on a business, or doing an act or classes of acts, in relation to securities;

(ca)  in the case of a contravention by a person of the business rules or listing rules of a securities exchange:

(i) an order giving directions concerning compliance with or enforcement of those rules to:

(A) the person; and

(B) if the person is a body corporate - the directors of the body corporate; and

(ii) if the contravention relates to the disclosure or provision of information - an order of either or both of the following kinds:

(A) an order requiring the person, or a person involved in the contravention, to disclose to the public or to specified persons, in accordance with the order, specified information which the person to whom the order is directed possesses or to which that person has access;

(B) an order requiring the person, or a person involved in the contravention, to publish advertisements in accordance with the order at that person's expense;

(d)  an order restraining a person from acquiring, disposing of or otherwise dealing with any securities that are specified in the order;

(e)  an order appointing a receiver of the property of a dealer or of property that is held by a dealer on behalf of another person, whether in trust or otherwise;

(f)  an order declaring a contract relating to securities to be void or voidable;

(g)  for the purpose of securing compliance with any other order under this section, an order directing a person to do or refrain from doing a specified act;

(h)  any ancillary order considered to be just and reasonable in consequence of the making of an order under any of the preceding provisions of this subsection.

1114(1A)  [``person aggrieved'']  

For the purposes of paragraph (1)(bb), if a body corporate contravenes provisions of the business rules or listing rules of a securities exchange, a person who holds securities of the body corporate that are quoted on a stock market of the securities exchange is taken to be a person aggrieved by the contravention.

1114(1B)  [Definition of ``person aggrieved'' not exclusive]  

Subsection (1A) does not limit the circumstances in which a person may be aggrieved by a contravention for the purposes of paragraph (1)(bb).

1114(2)  [Interim order]  

Where an application is made to the Court for an order under subsection (1), the Court may, if in the opinion of the Court it is desirable to do so, before considering the application, make an interim order, being an order of the kind applied for that is expressed to apply pending the determination of the application.

1114(3)  [Undertakings]  

Where the Commission or the Exchange applies to the Court for an order under subsection (1), the Court shall not require the applicant or any other person, as a condition of making an interim order under subsection (2), to give any undertakings as to damages.

1114(4)  [Unfairly prejudice]  

The Court shall not make an order under subsection (1) if it is satisfied that the order would unfairly prejudice any person.

1114(5)  [Notice of application for Court order]  

Before making an order under subsection (1), the Court may direct that notice of the application be given to such persons as it thinks fit or direct that notice of the application be published in such manner as it thinks fit, or both.

1114(6)  [Power of receiver]  

A person appointed by order of the Court under subsection (1) as a receiver of the property of a dealer:

(a)  may require the dealer to deliver to the person any property of which the person has been appointed receiver or to give to the person all information concerning that property that may reasonably be required;

(b)  may acquire and take possession of any property of which the person has been appointed receiver;

(c)  may deal with any property that the person has acquired or of which the person has taken possession in any way in which the dealer might lawfully have dealt with the property; and

(d)  has such other powers in respect of the property as the Court specifies in the order.

1114(7)  [``property'']  

In paragraph (1)(e) and subsection (6):

``property'' , in relation to a dealer, includes money, securities and documents of title to securities or other property entrusted to or received on behalf of any other person by the dealer or another person in the course of or in connection with a securities business carried on by the dealer.

1114(8)  [Contravention of order or requirement of receiver]  

A person shall not, without reasonable excuse, contravene:

(a)  an order under this section; or

(b)  a requirement of a receiver appointed by order of the Court under subsection (1).

1114(9)  [Court's power to rescind order]  

The Court may rescind or vary an order made by it under this section or suspend the operation of such an order.

1114(10)  [``securities'']  

In this section:

``securities'' includes marketable securities and marketable rights within the meaning of Division 3 of Part 7.10.