THE CORPORATIONS LAW

CHAPTER 7 - SECURITIES

PART 7.9 - FIDELITY FUNDS

SECTION 916   PROVISION WHERE FUND INSUFFICIENT TO MEET CLAIMS OR WHERE CLAIMS EXCEED TOTAL AMOUNT PAYABLE  

916(1)  [When fidelity fund insufficient to pay claims]  

Where the amount in a fidelity fund of a securities exchange is insufficient to pay the whole of the amount of all claims against it that have been allowed or in respect of which orders of the Court have been made:

(a)  the amount in the fund shall, subject to subsection (2), be apportioned among the claimants in such manner as the board thinks equitable; and

(b)  such a claim so far as it then remains unpaid shall be deemed to be charged against future receipts of the fund and paid out of the fund when moneys are available in the fund.

916(2)  [Claims against sole traders or partners]  

Where the total of all claims that have been allowed or in respect of which orders of the Court have been made in relation to defalcation or fraudulent misuses of property by or in connection with a sole trader or partner in a member firm recognised by a securities exchange exceeds the total amount that may, under section 907, be paid under this Part in respect of that sole trader or member firm:

(a)  the total amount shall be apportioned among the claimants in such manner as the board thinks equitable; and

(b)  on payment out of the fund of that total amount in accordance with that apportionment all such claims and any orders relating to those claims and all other claims against the fund that may subsequently arise or be made in respect of defalcations or fraudulent misuses of property by or in connection with that sole trader or member firm are discharged.

 

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