Section 1229F — Corporations Act 2001 (Cth)

Compensation for penalties incurred etc.

(1) A Court may on application under subsection (5) order a person to compensate a CCIV for loss or damage suffered by the CCIV if:

(a) the CCIV contravened, or allegedly contravened, a provision covered by subsection (2); and

(b) the loss or damage is:

(i) a pecuniary penalty to which the CCIV is liable in respect of the contravention or alleged contravention; or

(ii) an amount paid by the CCIV in settlement of proceedings in respect of the contravention or alleged contravention; and

(c) the person was the corporate director of the CCIV at the time of the contravention or alleged contravention; and

(d) the exception in subsection (3) does not apply.

The order must specify the amount of the compensation.

State and Territory offences and civil penalty provisions

(2) A provision of a law of a State or Territory is covered by this subsection if a contravention of the provision is an offence, or subject to a civil penalty.

Exception where liquidator etc. acting

(3) Subsection (1) does not apply if the conduct constituting the contravention or alleged contravention was engaged in solely as a result of an exercise of powers by:

(a) a liquidator or provisional liquidator of a sub‑fund of the CCIV; or

(b) a receiver, or receiver and manager, of the property of a sub‑fund of the CCIV; or

(c) a trustee or other person administering a compromise or arrangement made between the CCIV and someone else.

Recovery of damage

(4) A compensation order may be enforced as if it were a judgment of the Court.

Who may apply

(5) An application for a compensation order under this section may be made by any of the following:

(a) ASIC;

(b) a member of the CCIV;

(c) the CCIV.

Other laws not affected

(6) This section does not affect any liability that a person has under any other law.

Related sections

• s 1229C — Exceptions etc. specific to this Act
• s 1229D — Corporate director generally taken to commit offences committed by CCIV
• s 1229E — Corporate director generally liable for civil penalties for which the CCIV would be liable
• s 1229G — Time limit for application for compensation order
• s 1229H — Civil evidence and procedure rules for compensation orders
• s 1230 — Shares can only be issued in respect of sub‑funds

Research how courts apply s 1229F

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