Section 212: Application of the investor protection fund.

(1) The funds of an investor protection fund shall be held and applied for the purpose of:
(a) compensating persons who suffer pecuniary loss from the revocation or cancellation of the registration of a capital market operator pursuant to the provisions of section 38 of this Act;
(b) the insolvency, bankruptcy or negligence of a dealing member firm of a securities exchange or capital trade point; and
(c) any defalcation committed by a member company or any of its directors or employees in relation to any money or other property which, was entrusted or received or deemed received by a member company or any of its directors or employees whether before or after commencement of this Act in the course of or in connection with the business of that company or any other occurrence in respect of which the claim arose.
(2) For the purposes of this section, "a director of a member company" includes a person who, as at the time of the defalcation in question has been or has ceased to be a director of a member company if, at the time of the defalcation the person claiming compensation has reasonable grounds for believing that person to be a director of a member company.