Corporations Act 2001

CHAPTER 8B - CORPORATE COLLECTIVE INVESTMENT VEHICLES  

PART 8B.3 - CORPORATE GOVERNANCE OF CCIVs  

Division 7 - Corporate contraventions  

Subdivision C - Consequences of contraventions of State and Territory laws  

SECTION 1229F   COMPENSATION ORDERS - STATE AND TERRITORY LAWS  

Compensation for penalties incurred etc.

1229F(1)    
A Court may on application under subsection (5) order a person to compensate a CCIV for loss or damage suffered by the CCIV if:

(a)    the CCIV contravened, or allegedly contravened, a provision covered by subsection (2) ; and

(b)    the loss or damage is:

(i) a pecuniary penalty to which the CCIV is liable in respect of the contravention or alleged contravention; or

(ii) an amount paid by the CCIV in settlement of proceedings in respect of the contravention or alleged contravention; and

(c)    the person was the corporate director of the CCIV at the time of the contravention or alleged contravention; and

(d)    the exception in subsection (3) does not apply.

The order must specify the amount of the compensation.

State and Territory offences and civil penalty provisions

1229F(2)    
A provision of a law of a State or Territory is covered by this subsection if a contravention of the provision is an offence, or subject to a civil penalty.

Exception where liquidator etc. acting

1229F(3)    
Subsection (1) does not apply if the conduct constituting the contravention or alleged contravention was engaged in solely as a result of an exercise of powers by:

(a)    a liquidator or provisional liquidator of a sub-fund of the CCIV; or

(b)    a receiver, or receiver and manager, of the property of a sub-fund of the CCIV; or

(c)    a trustee or other person administering a compromise or arrangement made between the CCIV and someone else.

Recovery of damage

1229F(4)    
A compensation order may be enforced as if it were a judgment of the Court.

Who may apply

1229F(5)    
An application for a compensation order under this section may be made by any of the following:

(a)    ASIC;

(b)    a member of the CCIV;

(c)    the CCIV.

Other laws not affected

1229F(6)    
This section does not affect any liability that a person has under any other law.