THE CORPORATIONS LAW

CHAPTER 8 - THE FUTURES INDUSTRY

PART 8.5 - FINANCIAL STATEMENTS AND AUDIT

SECTION 1224   POWER OF COURT TO RESTRAIN DEALINGS WITH FUTURES BROKER'S BANK ACCOUNTS  

1224(1)  [Grounds for Court to restrain dealings]  

Where the Court is satisfied that:

(a)  there are reasonable grounds for believing that:

(i) there is a deficiency in an account that is, or has at any time been, a clients' segregated account of a person; and

(ii) the person was, when the deficiency occurred, a futures broker or a member of a futures organisation;

(b)  there has been, at a time when a person was a futures broker or a member of a futures organisation, undue delay, or unreasonable refusal, on the person's part in paying, applying or accounting for money as required by this Chapter or a corresponding previous law;

(c)  a person has, at a time when the person was a futures broker or a member of a futures organisation, failed to pay money into a clients' segregated account of the person as required by this Chapter or a corresponding previous law; or

(d)  a person who is, or has at any time been, a futures broker or a member of a futures organisation, is carrying on, or last carried on, as the case requires, a futures broking business otherwise than in partnership and:

(i) in any case - the last futures brokers licence held by the person has been revoked or suspended; or

(ii) in any case - the person no longer carries on a futures broking business; or

(iii) if the person is a natural person - the person has died, or is incapable, because of physical or mental incapacity, of managing his or her affairs;

the Court may by order restrain dealings in respect of specified bank accounts that the person holds or maintains (whether in Australia or elsewhere), subject to such terms and conditions as the Court imposes.

1224(2)  [Application for order]  

An order under subsection (1) may only be made on an application by the Commission or by the futures organisation (if any) concerned.

1224(3)  (Omitted by No 110 of 1990, Sch 1 (effective 18 December 1990).)

1224(4)  [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, grant an interim order, being an order of the kind applied for that is expressed to have effect pending the determination of the application.

1224(5)  [Undertaking as to damages not required]  

Where the Commission makes an application to the Court for the making of an order under subsection (1), the Court shall not require the Commission, as a condition of granting an interim order under subsection (4), to give any undertaking as to damages.