THE CORPORATIONS LAW
PART 13 - THE CORPORATIONS LAW
THE CORPORATIONS LAW 82 The Corporations Law is as follows:...
CHAPTER 8 - THE FUTURES INDUSTRY
PART 8.3 - PARTICIPANTS IN THE FUTURES INDUSTRY
Division 4 - Liability of principals for representatives' conduct
SECTION 1185 LIABILITY OF PRINCIPALS WHERE ACT DONE IN RELIANCE ON REPRESENTATIVE'S CONDUCT 1185(1) [Application] This section applies where: (a) at a time when a person (in this section called the ``representative'') is a representative of only one person (in this section called the ``indemnifying principal'') or of 2 or more persons (in this section called the ``indemnifying principals''), the representative, in this jurisdiction or elsewhere:(i) engages in particular conduct; or
(ii) proposes, or represents that the representative proposes, to engage in particular conduct;(b) another person (in this section called the ``client'') does, or omits to do, a particular act, in this jurisdiction or elsewhere, because the client believes at a particular time in good faith that the representative engaged in, or proposes to engage in, as the case may be, that conduct:
(i) on behalf of some person (in this section called the ``assumed principal'') whether or not identified, or identifiable, at that time by the client; and
(ii) in connection with a futures broking business or futures advice business carried on by the assumed principal; and(c) it is reasonable to expect that a person in the client's circumstances would so believe and would do, or omit to do, as the case may be, that act because of that belief; whether or not that conduct is or would be within the scope of the representative's employment by, or authority from, any person.
(i) that the representative engaged in that conduct as a representative of some person; and
(ii) who that person is; and(d) that person is among the indemnifying parties; subsections (2) and (3) do not apply, for the purposes of the proceeding, in relation to the indemnifying parties other than that person.
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