90Repayment of money if disclosure statement condition not met

90 Repayment of money if disclosure statement condition not met

90 Repayment of money if disclosure statement condition not met

(cf Corporations Act s 724 (1) (a), (1A) and (2) (a))

(1) If—

(a) a person offers shares under a disclosure statement; and

(b) the disclosure statement states (expressly or impliedly) that it is a condition that the shares will not be issued or transferred unless—

(i) applications for a minimum number of the shares are received; or

(ii) a minimum amount is raised; and

(c) that condition is not satisfied within 4 months after the date of the disclosure statement;

the person must repay the money received by the person in respect of any applications for the shares made under the disclosure statement that have not resulted in an issue or transfer of the shares.

Maximum penalty—$2,500 or imprisonment for 6 months, or both.

(2) For the purpose of working out whether a condition referred to in subsection (1) has been satisfied, a person who has agreed to take shares as underwriter is taken to have applied for those shares.

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