Interpreta tlant.
Establish- ment of compensa- tion fund.
Securities Commis- gion Cum-
pensation
Fund Cora- mittee.
78
PART X
COMPENSATION FUND
98. (1) In this Part, unless the context otherwise requires- "Commillee" means the Securities Commission Compensation
Fund Committee established under section 100(1); "compensation fund" means the fund established under section 99: "default", in relation to the failure of a stockbroker, or a member firm or corporate member of a stock exchange, to perform a legal obligation, means a default arising from-
(a) the bankruptcy or insolvency of the stockbroker or member firm or, as the case may be, the winding up or insolvency of the corporate member;
(b) any breach of trust committed by the stockbroker,
member firm, or corporate member; or
(c) any defalcation, fraud, or misfeasance committed by the stockbroker, member firm, or corporate member or any servant employed by that stockbroker, member firm, or corporate member;
"legal obligation" includes an obligation arising under a contract or quasi-contract or under a trust (including a constructive trust); "stockbroking business" includes any trust carried on in conjunc- tion with, or as an adjunct to, a stockbroking business, and also includes the retention of securities whether for safe- keeping or otherwise, and whether for specific consideration or otherwise.
(2) A reference in this Part 10 a claimant or person making a claim includes, in the event of his death, insolvency, or other disability, a reference to his personal representative or any other person having authority to administer his estate.
Com-
99. The Commission shall establish and maintain pensation fund, to be known as the Stock Exchanges Compensation Fund, for the purposes set out in this Part.
100. (1) There shall be a committee, to be known as the Securities Commission Compensation Fund Committee, which shall be responsible, subject to this section, for the administration of the compensation fund.
79
(2) The Committee shall consist of five persons appointed by the Commission, of whom at least two shall be members of the Commission and two shall be persons nominated by the Council of the Federation.
(3) The Commission shall nominate one of the members of the Committee who is also a member of the Commission to be chairman of the Committee.
(4) The Committee shall exercise on behalf of the Commis- sion such of the powers, duties, and functions of the Commission under this Part as may from time to time be delegated to the Committee by the Commission; but the Commission may not delegate its power of delegation under this section or its powers under section 110.
(5) Any power, duty, or function delegated under this section may be exercised by members forming a majority of the Committee as if by this Part that power, duty, or function had been conferred on a majority of the members of the Committee. (6) Any delegation under this section may at any time be varied or revoked.
(7) The Commission may at any time remove any member of the Committee appointed by it under this section and may fill any vacancy in the Committee however arising.
(8) Subject to any direction of the Commission, the Com- mittee may regulate its procedure in such manner as it thinks fit.
101. (1) The compensation fund shall consist of-
(a) all money paid to or deposited with the Commission by the com- stock exchanges in accordance with the provisions of pensation this Part:
Money constituting
food.
(b) all money recovered under any guarantee entered into
under this Part;
(c) all money recovered by or on behalf of the Commission by the exercise of any right of action conferred by this Part:
(d) all money borrowed under subsection (2)
(e) all other money lawfully paid into the fund.
(2) The Commission may from time to time borrow for the purposes of the compensation fund from any lender and may charge any investments acquired under section 105 by way of
No comments yet.
Private notes are available after approval.