Commonwealth Numbered Acts

CORPORATIONS ACT 1989 No. 109 of 1989 - SECT 909

909. (1) Where all persons who have submitted claims under section 908 have
been fully compensated in accordance with the provisions of this Part for
pecuniary loss as referred to in subsection 907 (1) suffered in relation to
money or other property entrusted to or received by a partner in a member firm
recognised by a securities exchange, any other partner in that firm who has
made payment to a person in compensation for loss suffered by that person in
relation to that money or property is subrogated to the extent of that payment
to all the rights and remedies of that person against the fidelity fund if the
board, having regard to all the circumstances, determines that the partner was
in no way a party to the loss and acted honestly and reasonably in the matter.

(2) If a partner in a member firm feels aggrieved by the determination of a
board under subsection (1), the partner may, within 28 days after receiving
notice of the determination, appeal to the Court against the determination by
lodging a notice of appeal in the prescribed form.

(3) The appellant shall, on the day on which notice of appeal is lodged with
the Court, lodge a copy of the notice with the securities exchange.

(4) The Court shall inquire into and decide upon the appeal and, for that
purpose, may do all such matters and things, and may do those matters and
things in the same way and to the same extent, as it is empowered to do in the
exercise of its ordinary jurisdiction.

(5) Without limiting the generality of subsection (4), if the Court is of
opinion having regard to all the circumstances that the appellant was not a
party to the defalcation or fraudulent misuse of securities or documents of
title to the securities or of other property from which the pecuniary loss
arose and acted honestly and reasonably in the matter, it may order that the
appellant shall, to the extent of any payment made by the appellant, be
subrogated to the rights and remedies, in relation to the fidelity fund of the
relevant securities exchange, of the person to whom the appellant made such a
payment.