THE CORPORATIONS LAW

CCH Note: Part 13 of the Corporations Act 1989, inserted by sec 6 of No 110 of 1990, Sch 1 (effective 1 January 1991), begins as follows:

PART 13 - THE CORPORATIONS LAW
THE CORPORATIONS LAW 82
The Corporations Law is as follows:...

CHAPTER 7 - SECURITIES

PART 7.6 - MONEY AND SCRIP OF DEALERS' CLIENTS

SECTION 874 COURT MAY FREEZE CERTAIN BANK ACCOUNTS OF DEALERS AND FORMER DEALERS

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874(1) [Application of subsec (3)]

Subsection (3) of this section applies where, on application by the Commission, the Court is satisfied that a person holds, or has at any time held, a licence and that:

(a) there are reasonable grounds for believing that there is a deficiency in:

(i) a trust account of the person; or

(ii) an account maintained by the person under subsection 872(2);

whether the account is maintained in this jurisdiction or elsewhere; or

(b) there has been undue delay, or unreasonable refusal, on the person's part in paying, applying or accounting for trust money as provided for by this Part or a corresponding previous law by a condition of the licence or by the business rules of a securities exchange of which the person is or has been a member; or

(c) without limiting the generality of paragraph (b) of this subsection, the person has contravened:

(i) section 868; or

(ii) subsection 872(2).

View history note

874(2) [Further application]

Subsection (3) also applies where, on application by the Commission, the Court is satisfied that a person holds, or has at any time held, a licence and is carrying on, or last carried on, a securities business otherwise than in partnership and that:

(a) the licence has been revoked or suspended;

(b) the person is incapable, through mental or physical incapacity, of managing his or her affairs;

(c) the person no longer carries on a securities business; or

(d) the person has died.

874(3) [Court may freeze accounts]

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.

View history note

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