Application money to be held on trust
150C Application money to be held on trust
If a person offers shares for issue or sale under a disclosure statement, the person must hold —
all application money received from people applying for shares under the disclosure statement; and
all other money paid by them on account of the shares before they are issued or transferred,
in trust under this section for the applicants until the shares are issued or transferred or the money is returned to the applicants.
Penalty for this subsection: a fine of $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.
Penalty for this subsection: a fine of $2 500, or imprisonment for 6 months, or both.
Despite The Criminal Code section 23B(2), it is immaterial for the purposes of subsections (1) and (2) that any event occurred by accident.
[Section 150C inserted: No. 7 of 2016 s. 42.]
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