THE CORPORATIONS LAW

CHAPTER 6D - FUNDRAISING

PART 6D.2 - DISCLOSURE TO INVESTORS ABOUT SECURITIES

Division 5 - Procedure for offering securities

SECTION 725   EXPIRATION OF DISCLOSURE DOCUMENT  

725(1)  [Dealing with applications]  

If a person offers securities under a disclosure document and the disclosure document passes its expiry date, the person must deal with applications for the securities under the document in accordance with subsections (2) and (3).

725(2)  [Applications received before expiry date]  

If an application is received on or before the expiry date, the person may issue or transfer securities to the applicant.

Note:

Subsection 723(1) (when read with subsections 719(4) and (5)) requires the person issuing or transferring the securities to have reasonable grounds to believe that the application form was included in, or accompanied by, a disclosure document that was current at the time.

725(3)  [Applications received after expiry date]  

If an application is received after the expiry date, the person must either:

(a)  return any money received by the person from the applicant; or

(b)  give the applicant:

(i) a new disclosure document; and

(ii) 1 month to withdraw their application and be repaid; or

(c)  issue or transfer the securities to the applicant and give them:

(i) a new disclosure document; and

(ii) 1 month to withdraw their application and be repaid.