466Restrictions on advertising and publicity—shares

466 Restrictions on advertising and publicity—shares

466 Restrictions on advertising and publicity—shares

(cf Corporations Act s 734)

(1) A person must not—

(a) advertise; or

(b) publish a statement that directly or indirectly refers to;

an offer, or intended offer, of shares in a participating co-operative that is a distributing co-operative within the meaning of the relevant corresponding co-operatives law of another jurisdiction unless—

(c) a current disclosure statement relating to the shares is—

(i) registered with the Registrar for the other jurisdiction under a provision of that corresponding co-operatives law that corresponds to section 68; or

(ii) lodged with that Registrar for registration under that provision; and

(d) any other applicable requirements specified in the National Regulations for the purposes of this section are complied with.

Maximum penalty—$1,000.

(2) Subsection (1) applies in relation to shares in a distributing co-operative only if—

(a) the shares are offered to persons who are not shareholders in the co-operative; or

(b) the invitation is made to persons who are not shareholders in the co-operative.

(3) A person does not contravene subsection (1) by publishing an advertisement or statement if they publish it in the ordinary course of a business of—

(a) publishing a newspaper or magazine; or

(b) broadcasting by radio or television;

and the person did not know and had no reason to suspect that its publication would amount to a contravention of a provision of that subsection.

(4) An offence based on subsection (1) is an offence of strict liability.