Application money to be held on trust (cf Corporations Act s 722)
340 Application money to be held on trust (cf Corporations Act s 722)
If a person offers debentures for issue under a disclosure statement, the person must hold—
all application money received from people applying for debentures under the disclosure statement; and
all other money paid by them on account of the debentures before they are issued;
in trust under this section for the applicants until—
the debentures are issued; or
the money is returned to the applicants.
Maximum penalty—$2,500 or imprisonment for 6 months, or both.
If the application money needs to be returned to an applicant, the person must return the money as soon as practicable.Maximum penalty—$2,500 or imprisonment for 6 months, or both.
An offence based on subsection (1) or (2) is an offence of strict liability.
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