74Due diligence defence

74 Due diligence defence

74 Due diligence defence

(cf Corporations Act s 731)

(1) A person is not liable under this Division in relation to a contravention of section 72 because of a misleading or deceptive statement if the person proves they—

(a) made all inquiries (if any) that were reasonable in the circumstances; and

(b) after doing so, believed on reasonable grounds that the statement was not misleading or deceptive.

(2) A person is not liable under this Division in relation to a contravention of section 72 because of an omission from a disclosure statement in relation to a particular matter or particular information if the person proves they—

(a) made all inquiries (if any) that were reasonable in the circumstances; and

(b) after doing so, believed on reasonable grounds that there was no omission from the statement in relation to that matter or information.

(3) A person is not liable under this Division in relation to a contravention of section 72 because a disclosure statement is not current if the person proves they—

(a) made all inquiries (if any) that were reasonable in the circumstances; and

(b) after doing so, believed on reasonable grounds that the statement was current.