THE CORPORATIONS LAW

CHAPTER 7 - SECURITIES

PART 7.9 - FIDELITY FUNDS

SECTION 903   PROVISIONS WHERE FUND EXCEEDS $2,000,000  

903(1)  [Definition of ``relevant person'']  

In this section:

``relevant person'' , in relation to a securities exchange, means a member of the securities exchange:

(a)  who has made 20 or more annual payments of the contribution referred to in subsection 902(2); and

(b)  in respect of whom a payment from the fund has not been made or, if such a payment has been made, has been repaid to the fund.

903(2)  [Exemption from further payments]  

Where the amount in a fidelity fund of a securities exchange exceeds $2,000,000 or such lesser amount as is prescribed, a relevant person is, subject to this section, exempt from making further annual payments of the contribution referred to in subsection 902(2).

903(3)  [Death or retirement of relevant person]  

Where the amount in a fidelity fund of a securities exchange exceeds $2,000,000 or such lesser amount as is prescribed, the following paragraphs apply in relation to relevant persons who are natural persons:

(a)  on the retirement from business of such a relevant person, the board may, in its discretion, pay to that person an amount determined in accordance with subsection (5);

(b)  on the death of such a relevant person without any payment having been made to that person under paragraph (a), the board may, in its discretion, pay an amount determined in accordance with subsection (5) to his or her personal representative or to any person who was wholly or partly dependent on the relevant person at the time of his or her death.

903(4)  [Payment to ex-member body corporate]  

Where the amount in a fidelity fund of a securities exchange exceeds $2,000,000 or such lesser amount as is prescribed, the board may, in its discretion, pay to a relevant person, being a body corporate, that ceases to be a member of the securities exchange an amount determined in accordance with subsection (5).

903(5)  [Amount of payment]  

The amount that may, under subsection (3) or (4), be paid out of a fidelity fund to or in respect of a relevant person is the total amount of the annual payments made by the relevant person of the contribution referred to in subsection 902(2) or such proportion of that amount as is for the time being determined by the board either generally or in relation to the particular relevant person, either with or without simple interest at a rate not exceeding 3% per annum.

903(6)  [Board's determination re payment]  

A determination of the board under subsection (5) shall be in writing and may be in respect of any person or any class of persons.

903(7)  [Suspension of para (3)(a) or (b)]  

The securities exchange may, by written notice published in the Gazette:

(a)  suspend the operation of paragraph (3)(a) or (b); or

(b)  revoke any such suspension;

but, where the operation of one of those paragraphs is for the time being suspended, the securities exchange shall not suspend the operation of the other paragraph.

903(8)  [Further payments after exemption]  

Where the amount in a fidelity fund is, because of payments made out of the fund, less than $1,000,000 or such lesser amount as is prescribed and the securities exchange determines that a person who because of subsection (2) is exempt from making annual payments of the contribution referred to in subsection 902(2) should again be required to make annual payments of that contribution, the person is liable to make payments of that contribution accordingly.