CORPORATIONS ACT 2001
Ch 7 inserted by No 122 of 2001, s 3, Sch 1, Pt 1 (effective 11 March 2002).
As Act No 122 of 2001 repealed Ch 7 and 8 the history notes for Ch 7 use "inserted" and references to the former provisions have been removed.
In this Part:
adequate has a meaning affected by subsection (2).
borrowing includes obtaining credit.
compensation arrangements are arrangements that consist of:
(a) a set of rules about compensation; and
(b) a source of funds from which compensation is payable; and
(c) associated administrative and monitoring arrangements.
compensation rules means rules referred to in paragraph (a) of the definition of compensation arrangements.
Division 3 arrangements means compensation arrangements approved under Division 3.
Division 3 loss means a loss described in section 885C, other than a loss that section 885D provides is to be taken not to be a Division 3 loss.
Division 4 arrangements means the arrangements constituted by Division 4.
fidelity fund , in relation to a financial market, means a fund consisting principally of contributions made by:
(a) participants and past participants in the market; or
(b) participants and past participants in:
(i) the market; and
(ii) one or more other financial markets;
the purpose, or the main purpose, of which is to provide a source of funds for the payment of compensation to clients of participants. Any investments made using money in the fund are taken to form part of the fund.
NGF means the National Guarantee Fund that continues in existence under section 889A.
operating rules , in relation to the SEGC, means the rules referred to in section 890D.
Part 7.5 arrangements means Division 3 arrangements or Division 4 arrangements.
pay compensation includes provide compensation in a form other than money.
SEGC means the body corporate in relation to which a nomination as the Securities Exchanges Guarantee Corporation is in force under section 890A.
880B(2) [``Adequate'' compensation arrangements]
For the purposes of this Part, the question whether proposed compensation arrangements, compensation arrangements as proposed to be changed, or compensation arrangements that have been approved, are adequate is to be determined in accordance with Subdivision D of Division 3.
S 880B inserted by No 122 of 2001, s 3, Sch 1, Pt 1 (effective 11 March 2002).