CCH Note:
Part 13 of the
Corporations Act 1989, inserted
by sec 6 of No 110 of 1990, Sch 1 (effective 1 January 1991), begins as
follows:
PART 13 - THE CORPORATIONS LAW
THE CORPORATIONS LAW
82
The Corporations Law is as follows:...
CHAPTER 5C - MANAGED INVESTMENT SCHEMES
History
Chapter 5C inserted by No 62 of 1998, Sch 1 (effective
1 July 1998).
PART 5C.8 - EFFECT OF CONTRAVENTIONS (CIVIL LIABILITY AND VOIDABLE CONTRACTS)
History
Part 5C.8 inserted by No 61 of 1998, Sch 1 (effective 1 July 1998).
SECTION 601MB
VOIDABLE CONTRACTS WHERE SUBSCRIPTION OFFERS AND INVITATIONS CONTRAVENE THIS LAW
601MB(1)
(Voidable contracts)
If:
(a)
a managed investment scheme is being operated in contravention of subsection
601ED(5) and a person (the
offeror
) offers an interest in the scheme for subscription, or issues an invitation to subscribe for an interest in the scheme; or
(b)
a person (the
offeror
), in contravention of
Chapter 6D, offers an interest in a registered scheme for subscription, or issues an invitation to subscribe for an interest in a registered scheme;
a contract entered into by a person (other than the offeror) to subscribe for the interest as a result of the person accepting the offer, or of the acceptance of an offer made by the person in response to the invitation, is voidable at the option of that person by notice in writing to the offeror.
History
S 601MB(1) amended by No 156 of 1999, Sch 3, Pt 1 (effective 13 March 2000).
S 601MB(1) inserted by No 62 of 1998, Sch 1 (effective 1 July 1998).
601MB(2)
[Suspension of obligations]
If the person gives a notice under subsection
(1), the obligations of the parties to the contract are suspended:
(a)
during the period of 21 days after the notice is given; and
(b)
during the period beginning when an application is made under subsection
(4) in relation to the notice and ending when the application, and any appeals arising out of it, have been finally determined or otherwise disposed of.
History
S 601MB(2) inserted by No 62 of 1998, Sch 1 (effective 1 July 1998).
601MB(3)
[Effect of notice]
Subject to subsection
(6), the notice takes effect to void the contract:
(a)
at the end of 21 days after the notice is given; or
(b)
if, within that 21 days, the offeror applies under subsection
(4) - at the end of the period when the obligations of the parties are suspended under paragraph
(2).
History
S 601MB(3) inserted by No 62 of 1998, Sch 1 (effective 1 July 1998).
601MB(4)
[Court order]
Within 21 days after the notice is given, the offeror may apply to the Court for an order declaring the notice to have had no effect.
History
S 601MB(4) inserted by No 62 of 1998, Sch 1 (effective 1 July 1998).
601MB(5)
[Court's powers]
The Court may extend the period within which the offeror may apply under subsection
(4), even if the notice has taken effect.
History
S 601MB(5) inserted by No 62 of 1998, Sch 1 (effective 1 July 1998).
601MB(6)
[Declaration as to effectiveness of notice]
On application under subsection
(4), the Court may declare the notice to have had no effect if it is satisfied that, in all the circumstances, it is just and equitable to make the declaration.
History
S 601MB(6) inserted by No 62 of 1998, Sch 1 (effective 1 July 1998).
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