Corporations Act 2001

CHAPTER 6D - FUNDRAISING  

PART 6D.3A - CROWD-SOURCED FUNDING  

Division 4 - Defective etc. CSF offer documents  

SECTION 738X   RESPONSIBLE INTERMEDIARY ' S OBLIGATIONS ON BECOMING AWARE THAT CSF OFFER DOCUMENT IS DEFECTIVE  

When this section applies

738X(1)    
This section applies if the responsible intermediary for a CSF offer becomes aware, while the offer is open, that the CSF offer document is defective.

Note: See also section 738V , which imposes notification obligations in relation to defective CSF offer documents.

Responsible intermediary must suspend or close the CSF offer

738X(2)    
The responsible intermediary must, as soon as practicable:

(a) remove the CSF offer document from the offer platform; and

(b) either:

(i) close the offer; or

(ii) suspend the offer by giving notice on the offer platform that the offer is suspended.

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

Note 2: See also section 738N , which deals with closure of CSF offers.

738X(3)    
If the responsible intermediary suspends the offer, the notice required by subparagraph (2)(b)(ii) must continue to appear on the offer platform until the suspension ends (see subsection (6)) or the offer closes.

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

738X(4)    
An offence based on subsection (2) or (3) is an offence of strict liability.

Consequences of publication of supplementary or replacement CSF offer document

738X(5)    
Subsections (6) and (7) apply if:

(a) for the purpose of correcting the defect in the CSF offer document, the company making the CSF offer provides the responsible intermediary with a supplementary CSF offer document or a replacement CSF offer document; and

(b) the responsible intermediary publishes the supplementary CSF offer document or replacement CSF offer document on the offer platform.

738X(6)    
If the CSF offer has been suspended, the suspension of the CSF offer ends when the supplementary CSF offer document or replacement CSF offer document is first published on the offer platform.

738X(7)    

The responsible intermediary must, as soon as practicable after the supplementary CSF offer document or replacement CSF offer document is first published on the offer platform, give each person who has already applied pursuant to the CSF offer a written notice, accompanied by that document, advising the person that they may, within 14 days after the date of the notice, withdraw their application and be repaid.

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

Note 2: If the suspension does not end under this subsection, the responsible intermediary must return the application money when the offer closes (see section 738ZB ).

738X(8)    
An offence based on subsection (7) is an offence of strict liability.

738X(9)    

A person who is given a notice under subsection (7) may, within 14 days after the date of the notice, withdraw their application. The withdrawal must be by notice in writing to the responsible intermediary.

Note: If an applicant withdraws their application, the responsible intermediary must return the application money (see section 738ZB ).