and section 708 does not say otherwise.

Note 1: Section 706 normally requires disclosure for the issue of securities. This subsection is intended to prevent avoidance of section 706. However, to establish a contravention of this subsection, the only purpose that needs to be shown is that referred to in paragraph (b).

Note 2: The issuer and the seller must both consent to the disclosure document (see section 720).

Evidence of intention—indirect issue

(4) Unless the contrary is proved, a body is taken to issue securities with the purpose referred to in paragraph (3)(b) if any of the securities are subsequently sold, or offered for sale, within 12 months after their issue.

Sale amounting to indirect off-market sale by controller

(5) An offer of a body's securities for sale within 12 months after their sale by a person who controlled the body at the time of the sale needs disclosure to investors under this Part if:

(a)

at the time of the sale by the controller either:

(i)

the securities were not quoted; or

(ii)

although the securities were quoted, they were not offered for sale in the ordinary course of trading on a stock market of a securities exchange; and

(b)

the controller sold the securities without disclosure to investors under this Part; and

(c)

the controller sold the securities with the purpose of the person to whom they were sold:

(i)

selling or transferring them; or

(ii)

granting, issuing or transferring interests in, or options or warrants over, them;