Corporations Act 2001
CCH note - modifying legislative instruments: The application of Pt 8B.3 is affected by the following legislative instruments that commenced or were amended on or after 1 January 2022: the ASIC Corporations (CCIV Auditors) Instrument 2024/668.
For other legislative instruments or class orders before 1 January 2022 that affect the application of Pt 8B.3, please consult the legislative instruments or class orders directly. These are reproduced in the regulatory-resources section of the company-law practice area in CCH iKnowConnect.
CCH Note: Division 7 is modified by the ASIC Corporations (Chapter 5C - Miscellaneous Provisions) Instrument 2017/125.
CCH Note: Subdivision C is modified by the ASIC Corporations (Chapter 5C - Miscellaneous Provisions) Instrument 2017/125.
CCH Note: Section 1229F is modified by the ASIC Corporations (Chapter 5C - Miscellaneous Provisions) Instrument 2017/125.
Compensation for penalties incurred etc.
1229F(1)
A Court may on application under subsection (5) order a person to compensate a CCIV for loss or damage suffered by the CCIV if: (a) the CCIV contravened, or allegedly contravened, a provision covered by subsection (2) ; and (b) the loss or damage is:
(i) a pecuniary penalty to which the CCIV is liable in respect of the contravention or alleged contravention; or
(c) the person was the corporate director of the CCIV at the time of the contravention or alleged contravention; and (d) the exception in subsection (3) does not apply.
(ii) an amount paid by the CCIV in settlement of proceedings in respect of the contravention or alleged contravention; and
The order must specify the amount of the compensation.
State and Territory offences and civil penalty provisions
1229F(2)
A provision of a law of a State or Territory is covered by this subsection if a contravention of the provision is an offence, or subject to a civil penalty.
Exception where liquidator etc. acting
1229F(3)
Subsection (1) does not apply if the conduct constituting the contravention or alleged contravention was engaged in solely as a result of an exercise of powers by: (a) a liquidator or provisional liquidator of a sub-fund of the CCIV; or (b) a receiver, or receiver and manager, of the property of a sub-fund of the CCIV; or (c) a trustee or other person administering a compromise or arrangement made between the CCIV and someone else.
Recovery of damage
1229F(4)
A compensation order may be enforced as if it were a judgment of the Court.
Who may apply
1229F(5)
An application for a compensation order under this section may be made by any of the following: (a) ASIC; (b) a member of the CCIV; (c) the CCIV.
Other laws not affected
1229F(6)
This section does not affect any liability that a person has under any other law.
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