Commonwealth Consolidated Acts

CORPORATIONS ACT 2001 - SECT 1229F

Compensation for penalties incurred etc.

  (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

  (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

  (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

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

Who may apply

  (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

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