(1) If a person offers securities under a disclosure document and the
disclosure document passes its expiry date, the person must deal with
applications for the securities under the document in accordance with
subsections (2) and (3).
(2) If an application is received on or before the expiry date, the person may
issue or transfer securities to the applicant.
- Note: Subsection 723(1) (when
read with subsections 719(4) and (5)) requires the person issuing or
transferring the securities to have reasonable grounds to believe that the
application form was included in, or accompanied by, a disclosure document
that was current at the time.
(3) If an application is received after the expiry date, the person must
either:
- (a)
- return any money received by the person from the applicant; or
- (b)
- give the applicant:
- (i)
- a new disclosure document; and
- (ii)
- 1 month to withdraw their application and be repaid; or
- (c)
- issue or transfer the securities to the applicant and give them:
- (i)
- a new disclosure document; and
- (ii)
- 1 month to withdraw their application and be repaid.