Western Australian Consolidated Acts Western Australian Consolidated Acts (1) Where any shares
or debentures have been offered to the public for subscription, all
application and other moneys paid by any applicant on account of shares or
debentures prior to the allotment thereof shall, until the allotment of such
shares or debentures, be held by the company, or, in the case of an intended
company, by the persons named in the prospectus as provisional directors and
the promoters upon trust for the applicant: Provided that nothing contained in
this section shall place any obligation or duty upon any bank or third person
with whom any such moneys may have been deposited to inquire into or see to
the proper application of such moneys so long as such bank or third person
acts in good faith.
(2) If default is made
in complying with any of the provisions of this section, in the case of a
company, every officer of the company in default, and, in the case of an
intended company, every person named in the prospectus as a proposed director
and every promoter who knowingly and wilfully authorises or permits the
default shall, in addition to the liability imposed by the next following
section, be guilty of an offence and liable to a penalty not exceeding $200.
[Section 52 amended by No. 113 of 1965
s. 8(1).]