Corporations Legislation Amendment (Simpler Regulatory System) Act 2007 (101 of 2007)

Schedule 1   Amendments

Part 3   Amendments commencing on Proclamation

Corporations Act 2001

215   At the end of section 739

Add:

Defective advertisements or statements

(6) For the purposes of this section, an advertisement or publication of a kind referred to in subsection 734(5) or (6) is defective if:

(a) there is a misleading or deceptive statement in the advertisement or publication; or

(b) there is an omission from the advertisement or publication of material required by the relevant subsection to be included in the advertisement or publication; or

(c) if the advertisement or publication relates to an offer of securities in a class that is not already quoted, and is published before a disclosure document in relation to the offer is lodged - the advertisement or publication includes material that is not referred to in paragraph 734(5)(b).

Forecasts and other forward-looking statements

(7) For the purposes of the definition of defective in subsection (6), a person is taken to make a misleading statement about a future matter (including the doing of, or refusing to do, an act) if they do not have reasonable grounds for making the statement.

(8) Subsection (7) does not limit the circumstances in which a statement may be misleading.