Corporations Act 2001

CHAPTER 8B - CORPORATE COLLECTIVE INVESTMENT VEHICLES  

PART 8B.3 - CORPORATE GOVERNANCE OF CCIVs  

Division 7 - Corporate contraventions  

Subdivision C - Consequences of contraventions of State and Territory laws  

SECTION 1229F   COMPENSATION ORDERS - STATE AND TERRITORY LAWS  


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

(ii) an amount paid by the CCIV in settlement of proceedings in respect of the contravention or alleged contravention; and

(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.

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.


View surrounding sectionsView surrounding sectionsBack to top


This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.