Document ID: chunk:federal_register_of_legislation:C2005C00498:clause:1_412b
Version: federal_register_of_legislation:C2005C00498
Segment Type: clause
Provision Reference: sch 1 cl 412B
Character Range: 905497–906536

412B  Subsection 707(4)
Repeal the subsection, substitute:

The purpose test in subsection (3)

 (4) For the purposes of subsection (3):
 (a) securities are taken to be:
 (i) issued with the purpose referred to in subparagraph (3)(b)(i); or
 (ii) acquired with the purpose referred to in subparagraph (3)(b)(ii);
  if there are reasonable grounds for concluding that the securities were issued or acquired with that purpose (whether or not there may have been other purposes for the issue or acquisition); and
 (b) without limiting paragraph (a), securities are taken to be:
 (i) issued with the purpose referred to in subparagraph (3)(b)(i); or
 (ii) acquired with the purpose referred to in subparagraph (3)(b)(ii);
  if any of the securities are subsequently sold, or offered for sale, within 12 months after issue, unless it is proved that the circumstances of the issue and the subsequent sale or offer are not such as to give rise to reasonable grounds for concluding that the securities were issued or acquired with that purpose.