sec.88Application money to be held on trust (cf Corporations Act s 722 )

sec.88 Application money to be held on trust (cf Corporations Act s 722 )

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. 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. (sec.88-ssec.1) 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. Maximum penalty—$2,500 or imprisonment for 6 months, or both. (sec.88-ssec.2) 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. (sec.88-ssec.3) An offence based on subsection (1) or (2) is an offence of strict liability.

• (a) all application money received from people applying for shares under the disclosure statement; and
• (b) all other money paid by them on account of the shares before they are issued or transferred;
• (c) the shares are issued or transferred; or
• (d) the money is returned to the applicants.