Corporations Act 2001

CHAPTER 6D - FUNDRAISING  

PART 6D.2 - DISCLOSURE TO INVESTORS ABOUT SECURITIES (OTHER THAN FOR CSF OFFERS)  

Division 5 - Procedure for offering securities  

SECTION 722   APPLICATION MONEY TO BE HELD ON TRUST  

722(1)   [ Money in trust]  

If a person offers securities for issue or sale under a disclosure document, the person must hold:

(a) all application money received from people applying for securities under the disclosure document; and

(b) all other money paid by them on account of the securities before they are issued or transferred;

in trust under this section for the applicants until:

(c) the securities are issued or transferred; or

(d) the money is returned to the applicants.

722(2)   [ Return of trust money]  

If the application money needs to be returned to an applicant, the person must return the money as soon as practicable.

722(3)   [ Strict liability offence]  

An offence based on subsection (1) or (2) is an offence of strict liability.

Note: For strict liability , see section 6.1 of the Criminal Code .