Corporations Act 2001

CHAPTER 6D - FUNDRAISING  

PART 6D.3A - CROWD-SOURCED FUNDING  

Division 3 - Making offers under this Part  

SECTION 738N   MEANING OF MADE, OPEN, CLOSED, SUSPENDED AND COMPLETE  

When a CSF offer is made

738N(1)    
A CSF offer is made at the time when a CSF offer document for the offer is first published on a platform of the responsible intermediary.

When a CSF offer is open

738N(2)    
A CSF offer is open during the period starting at the time when the offer is made and ending at the time when the offer is closed, but not including any part of that period while the offer is suspended.

When a CSF offer is closed

738N(3)    
Subject to subsections (4) and (5) , the responsible intermediary for a CSF offer may close the offer at any time by giving notice on the offer platform that the offer is closed. If the intermediary does so, the offer is closed from the time when notice is so given on the offer platform.

Note: See also section 738P (which deals with removal of a CSF offer document from the offer platform) and section 738ZB (which deals with the responsible intermediary ' s obligations in relation to application money).

738N(4)    
The responsible intermediary for a CSF offer must close the offer as soon as practicable after the first of the following occurs:

(a)    the period of 3 months starting from when the offer was made ends;

(b)    if the CSF offer document specifies a period during which the offer is to be open, or a date after which the offer is no longer to be open - that period ends or that date occurs;

(c)    the responsible intermediary considers that the offer is fully subscribed to the maximum subscription amount for the offer;

(d)    the company making the offer notifies the responsible intermediary under section 738S that the company wants the offer withdrawn;

(e)    section 738Q prohibits the continued publication of the CSF offer document on the offer platform.

Note 1: Failure to comply with this subsection is an offence (see subsection 1311(1) ).

Note 2: See also subsection 738X(2) , which requires the responsible intermediary to either close or suspend the CSF offer if the intermediary becomes aware that the CSF offer document is defective.

738N(5)    
The hosting arrangement for a CSF offer may impose limits on the responsible intermediary ' s power to close the offer otherwise than in circumstances when the intermediary:

(a)    is required by subsection (4) to close the offer; or

(b)    is required by subsection 738X(2) to either close or suspend the offer because the CSF offer document is defective.

When a CSF offer is suspended

738N(6)    
A CSF offer is suspended during the period of any suspension of the offer under section 738X (responsible intermediary ' s obligations on becoming aware that CSF offer document is defective).

When a CSF offer is complete

738N(7)    
A CSF offer is complete if:

(a)    the offer is closed because of paragraph (4)(a) , (b) or (c) ; and

(b)    all periods within which people could withdraw applications made pursuant to the offer have ended; and

(c)    the applications that have been received by the responsible intermediary and that have not been withdrawn or rejected represent at least the minimum subscription amount for the offer.

Note: For when applications can be withdrawn, see section 738T .