Section 1100ZE — Corporations Act 2001 (Cth)

(1) If a person offers ESS interests for issue or sale to an ESS participant in connection with an employee share scheme, the person must hold:

(a) all application money received from ESS participants applying for ESS interests in connection with the employee share scheme; and

(b) all other money paid by them on account of the ESS interests before they are issued or transferred;

in trust under this section for the ESS participants until:

(c) the ESS interests are issued or transferred; or

(d) the money is returned to the ESS participants.

(2) If the application money needs to be returned to an ESS participant, the person must return the money as soon as practicable.

(3) An offence based on subsection (1) or (2) is an offence of strict liability.

Related sections

• s 1100ZB — Amounts that are excluded from the monetary cap
• s 1100ZC — Making offers under this Division
• s 1100ZD — Regulatory relief for certain subsequent sale offers of ESS interests
• s 1100ZF — Dealing with money received before liquidity period
• s 1100ZG — Revocation of regulatory relief in certain circumstances
• s 1100ZH — Misstatement in, or omission from, disclosure information

Research how courts apply s 1100ZE

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