(1) If the Board is satisfied that:

(a)

a person or partnership (in this section called the defaulter ) has failed to discharge an obligation to transfer securities to another person or partnership (in this section called the entitled entity ); and

(b)

the entitled entity:

(i)

has made a claim under Division 6, 6A, 6B or 6C in respect of the failure and has had securities transferred to it, or an amount paid to it, in satisfaction of the claim; or

(ii)

unless it is a settlement authority—would have been entitled to make a claim under Division 6B or 6C in respect of the failure if a settlement authority had not transferred securities to it for the purpose of remedying the failure; or

(iii)

if it is a settlement authority—would have been entitled to make a claim under Division 6C in respect of the failure if it had not obtained securities for the purpose of remedying the failure; and

(c)

if the defaulter had duly transferred securities in accordance with the obligation, an amount would have been paid, or property would have been transferred, to the entitled entity as the holder of the securities; and

(d)

the entitled entity has not received, and is not entitled to receive (otherwise than from the defaulter):

(i)

the amount or property; or

(ii)

an equivalent amount or equivalent property in respect of securities transferred or obtained as mentioned in paragraph (b); and

(e)

if subparagraph (b)(i) applies and an amount has been paid in satisfaction of the claim—the amount paid does not adequately compensate the entitled entity for the loss of the amount or property referred to in paragraph (c);