Commonwealth Numbered Acts

CORPORATIONS ACT 1989 No. 109 of 1989 - SECT 916

916. (1) Where the amount in a fidelity fund of a securities exchange is
insufficient to pay the whole of the amount of all claims against it that have
been allowed or in respect of which orders of the Court have been made:

   (a)  the amount in the fund shall, subject to subsection (2), be
        apportioned among the claimants in such manner as the board thinks
        equitable; and

   (b)  such a claim so far as it then remains unpaid shall be deemed to be
        charged against future receipts of the fund and paid out of the fund
        when moneys are available in the fund.

(2) Where the total of all claims that have been allowed or in respect of
which orders of the Court have been made in relation to defalcation or
fraudulent misuses of property by or in connection with a sole trader or
partner in a member firm recognised by a securities exchange exceeds the total
amount that may, under section 907, be paid under this Part in respect of that
sole trader or member firm:

   (a)  the total amount shall be apportioned among the claimants in such
        manner as the board thinks equitable; and

   (b)  on payment out of the fund of that total amount in accordance with
        that apportionment all such claims and any orders relating to those
        claims and all other claims against the fund that may subsequently
        arise or be made in respect of defalcations or fraudulent misuses of
        property by or in connection with that sole trader or member firm are
        discharged.