Corporations Act 2001

CHAPTER 6D - FUNDRAISING  

PART 6D.3A - CROWD-SOURCED FUNDING  

Division 4 - Defective etc. CSF offer documents  

SECTION 738Z   EXCEPTIONS TO LIABILITY UNDER SECTION 738Y  

Lack of knowledge

738Z(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 ).

738Z(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

738Z(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 ).

738Z(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) .

738Z(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

738Z(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 ).