THE CORPORATIONS LAW

CHAPTER 6D - FUNDRAISING

PART 6D.4 - ASIC'S POWERS

SECTION 739   ASIC STOP ORDERS  

739(1)  (Power to make order)  

If ASIC is satisfied that an offer of securities under a disclosure document lodged with ASIC would contravene section 728, ASIC may order that no offers, issues, sales or transfers of the securities be made while the order is in force.

739(2)  [Obligation to hold hearing]  

Before making an order under subsection (1), ASIC must:

(a)  hold a hearing; and

(b)  give a reasonable opportunity to any interested people to make oral or written submissions to ASIC on whether an order should be made.

739(3)  [Interim orders]  

If ASIC considers that any delay in making an order under subsection (1) pending the holding of a hearing would be prejudicial to the public interest, ASIC may make an interim order that no offers, issues, sales or transfers of the securities be made while the interim order is in force. The interim order may be made without holding a hearing and lasts for 21 days after the day on which it is made unless revoked before then.

739(4)  [Interim orders during hearing]  

At any time during the hearing, ASIC may make an interim order that no offers, issues, sales or transfers of the securities be made while the interim order is in force. The interim order lasts until:

(a)  ASIC makes an order under subsection (1) after the conclusion of the hearing; or

(b)  the interim order is revoked;

whichever happens first.

739(5)  [Orders in writing]  

An order under subsection (1), (3) or (4) must be in writing and must be served on the person who is ordered not to offer, issue, sell or transfer securities under the disclosure document.