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CORPORATIONS ACT 2001

CHAPTER 6D - FUNDRAISING  

PART 6D.3 - PROHIBITIONS, LIABILITIES AND REMEDIES (OTHER THAN FOR CSF OFFERS)  

Division 1 - Prohibitions and liabilities  

SECTION 736  SECURITIES HAWKING PROHIBITED  

736(1)  

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A person must not offer securities for issue or sale in the course of, or because of, an unsolicited:


(a) meeting with another person; or


(b) telephone call to another person.

736(1A)  

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Subsection (1) does not apply if the offer is exempted under subsection (2).

Note: A defendant bears an evidential burden in relation to the matter in subsection (1A), see subsection 13.3(3) of the Criminal Code.

736(1B)  

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An offence based on subsection (1) is an offence of strict liability.

Note: For strict liability, see section 6.1 of the Criminal Code.

736(2)  

Subsection (1) does not prohibit an offer of securities if:


(a) the offer does not need a disclosure document because of subsection 708(8) or (10) (sophisticated investors); or


(b) the offer does not need a disclosure document because of subsection 708(11) (professional investors); or


(c) the offer is an offer of listed securities made by telephone by a licensed securities dealer; or


(d) the offer is made to a client by a licensed securities dealer through whom the client has bought or sold securities in the last 12 months; or


(e) the offer is made under an eligible employee share scheme.
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[CCH Note: Act No 101 of 2007, Sch 1, Pt 6[228] contained the following application provision (which was effective 28 June 2007):

Application of items 4, 5, 86, 92, 106, 131 and 132

The amendments made by items 4, 5, 86, 92, 106, 131 and 132 of this Schedule apply to employee share schemes offered on or after the day on which those items commence.

]

 



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