115Power of committee to settle claims

##### 115 Power of committee to settle claims (1) Subject to this Part, a committee may allow and settle a proper claim for compensation from a fidelity fund of a securities exchange at any time after the occurrence of the pecuniary loss in respect of which the claim arose. (2) Subject to subsection (3), a person shall not commence proceedings under this Part against a securities exchange without leave of the committee unless: (a) the committee has disallowed his claim; and (b) the claimant has exhausted all relevant rights of action and other legal remedies for the recovery of the money, securities, documents of title to securities or other property in respect of which the pecuniary loss occurred, being rights and remedies that are available against the member of the securities exchange in relation to whom the claim arose and all other persons who are liable in respect of the loss suffered by the claimant, other than any right or remedy that the claimant may have: (i) under section 112, against another securities exchange; or (ii) under the provision of a law of a participating State or participating Territory that corresponds with section 112, against a body corporate that is a securities exchange for the purposes of the corresponding law of that State or Territory. (3) A person who has been refused leave by the committee of a securities exchange under subsection (2) may apply to the Court for leave to commence proceedings against the securities exchange and the Court may make such order in the matter as it thinks fit. (4) A committee, after disallowing, whether wholly or partly, a claim for compensation from a fidelity fund of a securities exchange, shall serve notice of the disallowance in the prescribed form on the claimant or his solicitor. (5) Proceedings against a securities exchange in respect of a claim that has been disallowed by a committee shall not be commenced after the expiration of 3 months after the service of the notice of disallowance referred to in subsection (4). (6) In proceedings brought to establish a claim, evidence of an admission or confession by, or other evidence that would be admissible against, the person against whom a defalcation or fraudulent misuse of property is alleged is admissible to prove the defalcation or fraudulent misuse notwithstanding that the person is not the defendant in or a party to those proceedings, and all defences that would have been available to that person are available to the securities exchange. (7) The committee or, where proceedings are brought to establish a claim, the Court, if satisfied that there was a defalcation or fraudulent misuse of property on which to found the claim, may allow the claim and act accordingly, notwithstanding that the person against whom the defalcation or fraudulent misuse of property is alleged has not been convicted or prosecuted or that the evidence on which the committee or Court, as the case may be, acts would not be sufficient to establish the guilt of that person on a criminal trial in respect of the defalcation or fraudulent misuse of property.