Commonwealth Numbered Acts

CORPORATIONS ACT 1989 No. 109 of 1989 - SECT 1224

1224. (1) Where the Court is satisfied that:

   (a)  there are reasonable grounds for believing that:

        (i)    there is a deficiency in an account that is, or has at any time
               been, a clients' segregated account of a person; and

        (ii)   the person was, when the deficiency occurred, a futures broker
               or a member of a futures organisation;

   (b)  there has been, at a time when a person was a futures broker or a
        member of a futures organisation, undue delay, or unreasonable
        refusal, on the person's part in paying, applying or accounting for
        money as required by this Chapter or a corresponding law;

   (c)  a person has, at a time when the person was a futures broker or a
        member of a futures organisation, failed to pay money into a clients'
        segregated account of the person as required by this Act or a
        corresponding law; or

   (d)  a person who is, or has at any time been, a futures broker or a member
        of a futures organisation, is carrying on, or last carried on, as the
        case requires, a futures broking business otherwise than in
        partnership and:

        (i)    the last futures brokers licence held by the person was revoked
               or suspended at a time when the person was a corporation; or

        (ii)   the person no longer carries on such a business and was a
               corporation when the person last ceased to carry on such a
               business; the Court may by order restrain dealings in respect
               of specified bank accounts of the person, subject to such terms
               and conditions as the Court imposes.

(2) An order under subsection (1) may only be made on an application by the
Commission or by the futures organisation (if any) concerned.

(3) In addition, and without prejudice, to its effect apart from this
subsection, subsection (1) has the effect it would have if a reference in it
to a futures broker were a reference to a person who is, or has at any time
been, a futures broker as defined by paragraph (a) of the definition of

"futures broker" in section 9.

(4) Where an application is made to the Court for an order under subsection
(1), the Court may, if in the opinion of the Court it is desirable to do so,
before considering the application, grant an interim order, being an order of
the kind applied for that is expressed to have effect pending the
determination of the application.

(5) Where the Commission makes an application to the Court for the making of
an order under subsection (1), the Court shall not require the Commission, as
a condition of granting an interim order under subsection (4), to give any
undertaking as to damages.