Section 242 Corporations Act 2001 | Power of the Court to Make Costs Orders


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Section 242 of the Corporations Act 2001 (Cth) is ‘Power of the Court to Make Costs Orders’ and is extracted below.

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Our criminal defence lawyers are vastly experienced in advising and representing corporations and individuals who are facing investigations for regulatory issues and proceedings for criminal offences, and our expertise in serious and complex cases means you can rest assured of receiving the most effective legal representation whatever your situation may involve.

The Legislation

Section 242 of the Corporations Act 2001 (Cth) is Power of the Court to Make Costs Orders and reads as follows:

Power of the Court to Make Costs Orders

The Court may at any time make any orders it considers appropriate about the costs of the following persons in relation to proceedings brought or intervened in with leave under section 237 or an application for leave under that section:

(a)  the person who applied for or was granted leave;

(b)  the company;

(c)  any other party to the proceedings or application.

An order under this section may require indemnification for costs.

 

Note:       This Part does not apply to the adoption or amendment of benefit fund rules or to consequential amendments to the rest of the company’s constitution made under the Life Insurance Act 1995 , see Subdivision 2 of Division 4 of Part 2A of that Act.

The penalties                                                                                                              

The maximum penalty for the offence of Power of the Court to Make Costs Orders is:

3 months imprisonment and/or 10 penalty units (a Commonwealth penalty unit is currently $210).

However, it should be kept in mind that maximum penalties are reserved for the most serious cases.

Your legal team will be able to advise you of the essential elements the prosecution would need to prove in order to establish the offence, whether those elements are capable of being established in your particular situation, the most effective and efficient way forward and the likely outcome.