Corporations Act 2001

CHAPTER 6D - FUNDRAISING  

PART 6D.3 - PROHIBITIONS, LIABILITIES AND REMEDIES (OTHER THAN FOR CSF OFFERS)  

Division 1 - Prohibitions and liabilities  

SECTION 729   RIGHT TO RECOVER FOR LOSS OR DAMAGE RESULTING FROM CONTRAVENTION  

729(1)   Right to compensation.  

A person who suffers loss or damage because an offer of securities under a disclosure document contravenes subsection 728(1) may recover the amount of the loss or damage from a person referred to in the following table if the loss or damage is one that the table makes the person liable for. This is so even if the person did not commit, and was not involved in, the contravention.

People liable on disclosure document	[ operative ]
	These people …	are liable for loss or damage caused by …
1	the person making the offer	any contravention of subsection 728(1) in relation to the disclosure document
2	each director of the body making the offer if the offer is made by a body	any contravention of subsection 728(1) in relation to the disclosure document
3	a person named in the disclosure document with their consent as a proposed director of the body whose securities are being offered	any contravention of subsection 728(1) in relation to the disclosure document
4	an underwriter (but not a sub-underwriter) to the issue or sale named in the disclosure document with their consent	any contravention of subsection 728(1) in relation to the disclosure document
5	a person named in the disclosure document with their consent as having made a statement:	the inclusion of the statement in the disclosure document
	(a)	that is included in the disclosure document; or
	(b)	on which a statement made in the disclosure document is based
6	a person who contravenes, or is involved in the contravention of, subsection 728(1)	that contravention

Note: Item 2 - director includes a shadow director (see section 9 ).

729(1A)    

Table items 2 and 3 in subsection (1) do not apply to an offer of simple corporate bonds under a 2-part simple corporate bonds prospectus.

729(2)    
A person who acquires securities as a result of an offer that was accompanied by a profile statement is taken to have acquired the securities in reliance on both the profile statement and the prospectus for the offer.

729(3)    
An action under subsection (1) may begin at any time within 6 years after the day on which the cause of action arose.

729(4)    
This Part does not affect any liability that a person has under any other law.

Note: Conduct that contravenes subsection 728(1) is expressly excluded from the operation of section 1041H .