Commonwealth Consolidated Acts

CORPORATIONS ACT 2001 - SECT 738Z

Lack of knowledge

  (1)   A person:

  (a)   does not commit an offence against subsection   738Y(4) in respect of a contravention of subsection   738Y(1) that relates to a CSF offer document; and

  (b)   is not liable under subsection   738Y(5) in respect of a contravention of subsection   738Y(1) that relates to a CSF offer document;

if the person did not know that the CSF offer document was defective.

Note:   In a prosecution for an offence, a defendant bears an evidential burden in relation to the matter in this subsection   (see subsection   13.3(3) of the Criminal Code ).

  (2)   Subsection   (1) does not apply to a liability of a CSF intermediary that is covered by item   7 of the table in subsection   738Y(5).

Reasonable reliance on information given by someone else--statements and omissions

  (3)   A person does not commit an offence against subsection   738Y(4) in respect of a contravention of subsection   738Y(1), and is not liable under subsection   738Y(5) in respect of a contravention of subsection   738Y(1), because of a misleading or deceptive statement in, or an omission from, a CSF offer document if the person placed reasonable reliance on information given to them by:

  (a)   if the person is a body--someone other than a director, employee or agent of the body; or

  (b)   if the person is an individual--someone other than an employee or agent of the individual.

Note:   In a prosecution for an offence, a defendant bears an evidential burden in relation to the matter in this subsection   (see subsection   13.3(3) of the Criminal Code ).

  (4)   Subsection   (3) does not apply to a liability of a CSF intermediary that is covered by item   7 of the table in subsection   738Y(5).

  (5)   For the purposes of subsection   (3), a person is not the agent of a body or individual merely because they perform a particular professional or advisory function for the body or individual.

Withdrawal of consent--statements and omissions

  (6)   A person who is named in a CSF offer document as:

  (a)   being a proposed director or underwriter; or

  (b)   making a statement included in the document; or

  (c)   making a statement on the basis of which a statement is included in the document;

does not commit an offence against subsection   738Y(1), and is not liable under subsection   738Y(5) in respect of a contravention of subsection   738Y(1), because of a misleading or deceptive statement in, or an omission from, a CSF offer document if the person publicly withdrew their consent to being named in the document in that way.

Note:   In a prosecution for an offence, a defendant bears an evidential burden in relation to the matter in this subsection   (see subsection   13.3(3) of the Criminal Code ).