Commonwealth Consolidated Acts

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Application money to be held on trust

             (1)  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.

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

             (3)  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 .

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