Commonwealth Numbered Acts

CORPORATIONS ACT 1989 No. 109 of 1989 - SECT 1036

1036. (1) If the requirements referred to in paragraphs 1035 (1) (a) and (b)
have not been satisfied within 4 months after the issue of the prospectus in
relation to the shares, the company shall repay, within 7 days after the end
of those 4 months, all money received from applicants for shares.

(2) If any such money is not so repaid, the directors are, whether or not they
or any of them have been convicted of an offence or offences in respect of the
failure to repay the money, jointly and severally liable to repay the money
with interest at the rate of 8% per annum (or if another rate is prescribed,
that other rate) calculated from the end of the period of 7 days.

(3) A director is not guilty of an offence in respect of a contravention of
subsection (1), and is not liable under subsection (2) in respect of such a
contravention, if it is proved that the failure to repay the money was not due
to any misconduct or negligence by that director.

(4) In this section:

"prospectus" includes a prospectus issued before the commencement of this
Part.