Reasonable inquiries and reasonable belief—statements

(1) A person does not commit an offence against subsection 728(3), and is not liable under section 729 for a contravention of subsection 728(1), because of a misleading or deceptive statement in a prospectus if the person proves that they:

(a)

made all inquiries (if any) that were reasonable in the circumstances; and

(b)

after doing so, believed on reasonable grounds that the statement was not misleading or deceptive.

Reasonable inquiries and reasonable belief—omissions

(2) A person does not commit an offence against subsection 728(3), and is not liable under section 729 for a contravention of subsection 728(1), because of an omission from a prospectus in relation to a particular matter if the person proves that they:

(a)

made all inquiries (if any) that were reasonable in the circumstances; and

(b)

after doing so, believed on reasonable grounds that there was no omission from the prospectus in relation to that matter.