Commonwealth Numbered Acts

CORPORATIONS ACT 1989 No. 109 of 1989 - SECT 1265

1265. (1) Where:

   (a)  a person who, because of having particular information, is precluded
        by section 1253 from dealing in a futures contract deals, in
        contravention of section 1256, in that futures contract; or

   (b)  a person, being a body corporate, deals, in contravention of section 
        1256 , in a futures contract at a time when an officer of the body is,
        because of having particular information, precluded from dealing in
        that futures contract; the person is liable (whether or not the person
        has been convicted of an offence in respect of the contravention) to
        compensate any other party to the dealing who did not have that
        information for any loss sustained by that party because of any
        difference between the price at which the dealing took place and the
        price at which it would be likely to have taken place if that
        information had been generally available.

(2) A person who contravenes any of sections 1259 to 1264 (inclusive) (whether
or not the person has been convicted of an offence in respect of the
contravention) is liable to pay compensation to any other person who, in
dealing in futures contracts, suffers loss because of the difference between
the price at which the dealing takes place and the price at which it would be
likely to have taken place if the contravention had not occurred.

(3) The amount of compensation for which a person is liable under subsection
(1) or (2) is:

   (a)  in a case to which paragraph (b) does not apply-the amount of the loss
        sustained by the person claiming the compensation; or

   (b)  if the first-mentioned person has been found by a court to be liable,
        or has been ordered by a court, to pay an amount or amounts to any
        other person or persons under this Part or under subsection 232 (7) or
        a corresponding law because of the same act or transaction-the amount
        of that loss less the amount or the sum of the amounts that the
        first-mentioned person has been so found to be liable, or has been so
        ordered, to pay.

(4) For the purposes of subsection (3), the onus of proving that the liability
of a person to pay an amount to another person arose from the same act or
transaction from which another liability arose lies on the person liable to
pay the amount.

(5) An action under this section for recovery of compensation for a loss is
not maintainable after the end of the period of 2 years commencing on the day
of completion of the dealing in which the loss occurred.

(6) The Commission may, if it considers it to be in the public interest to do
so, bring an action in the name of, and for the benefit of, a person for
recovery of compensation for a loss referred to in subsection (1) and suffered
by that person.

(7) Nothing in subsection (1) affects any liability that a person may incur
under any other law.