Commonwealth Numbered Acts

CORPORATIONS ACT 1989 No. 109 of 1989 - SECT 842

842. (1) This section applies:

   (a)  in relation to a dealer (other than an exempt dealer) that is a
        corporation, in relation to a transaction of sale or purchase of
        securities;

   (b)  in relation to a dealer that is neither an exempt dealer nor a
        corporation, in relation to a transaction of sale or purchase of
        securities that is entered into in the course of an eligible
        securities business carried on by the dealer; or

   (c)  in relation to an exempt dealer, in relation to a transaction of sale
        or purchase of securities that is entered into in the course of an
        eligible securities business that the exempt dealer carries on in a
        capacity of personal representative of a dead dealer.

(2) A dealer shall, in respect of a transaction of sale or purchase of
securities, immediately give a contract note that complies with subsection (3)
to:

   (a)  where the transaction took place in the ordinary course of business on
        a stock market and the dealer entered into the transaction otherwise
        than as principal-the person for whom the dealer entered into the
        transaction;

   (b)  where the transaction did not take place in the ordinary course of
        business on a stock market and the dealer entered into the transaction
        otherwise than as principal-the person for whom the dealer entered
        into the transaction and the person with whom the dealer entered into
        the transaction; and

   (c)  where the transaction did not take place in the ordinary course of
        business on a stock market and the dealer entered into the transaction
        as principal-the person with whom the dealer entered into the
        transaction.

(3) A contract note given by a dealer under subsection (2) shall specify:

   (a)  the name or style under which the dealer carries on business as a
        dealer and the address of the principal place at which the dealer so
        carries on business;

   (b)  each securities exchange (if any) of which the dealer is a member;

   (c)  if the dealer is dealing as principal with a person who is not the
        holder of a dealers licence-that the dealer is so dealing;

   (d)  the name of the person to whom the dealer gives the contract note;

   (e)  the day on which the transaction took place and, if the transaction
        did not take place in the ordinary course of business on a stock
        market, a statement to that effect;

   (f)  the number, or amount and description, of the securities that are the
        subject of the contract;

   (g)  the price per unit of the securities;

   (h)  the amount of the consideration;

   (j)  the amount of commission charged;

   (k)  the amounts of all stamp duties or other duties and taxes payable in
        connection with the contract; and

   (m)  if an amount is to be added to, or deducted from, the settlement
        amount in respect of the right to a benefit bought or sold together
        with the securities-the first-mentioned amount and the nature of the
        benefit.

(4) A dealer shall not include in a contract note given under subsection (2),
as the name of the person with or for whom the dealer has entered into the
transaction, a name that the dealer knows, or could reasonably be expected to
know, is not the name by which that person is ordinarily known.

(5) A reference in this section to a dealer dealing, or entering into a
transaction, as principal includes a reference to a person:

   (a)  dealing or entering into a transaction on behalf of an associate of
        the dealer;

   (b)  dealing in securities on behalf of a body corporate in which the
        dealer has a controlling interest; or

   (c)  where the dealer carries on business as a dealer in
        partnership-dealing in securities on behalf of a body corporate in
        which the dealer's interest and the interests of the dealer's partners
        together constitute a controlling interest.

(6) For the purposes of this section:

   (a)  a dealer who is a member of a securities exchange shall not be taken
        to have entered into a transaction as principal merely because the
        transaction was entered into with another dealer who is a member of a
        securities exchange; and

   (b)  a transaction takes place in the ordinary course of business on a
        stock market if it takes place in prescribed circumstances or is a
        transaction that is a prescribed transaction for the purposes of this
        section.

(7) Despite Division 2 of Part 1.2, a person is not an associate of another
person for the purposes of this section merely because the first-mentioned
person is:

   (a)  a partner of the other person otherwise than because the
        first-mentioned person carries on a business of dealing in securities
        in partnership with the other person; or

   (b)  a director of a body corporate of which the other person is also a
        director, whether or not the body corporate carries on a business of
        dealing in securities.