Document ID: chunk:federal_register_of_legislation:C2025C00185:section:727:p2
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 727 (pt 2/2)
Character Range: 2819502–2820357

securities without disclosure to investors under that Part if the issue or transfer would result in a breach of the 20 investors ceiling or the $2 million ceiling (see subsections 708(3), (4), (5), (6) and (7)).

Circumstances in which a person is taken not to contravene this section
 (5) If:
 (a) a person relies on subsection 708AA(2) or 708A(5) to make offers of securities for issue or sale without disclosure to investors under Part 6D.2; and
 (b) the notice given under that subsection purported to comply with subsection 708AA(7) or 708A(6) but did not actually comply with subsection 708AA(7) or 708A(6);
the person is taken not to contravene this section.

Civil liability
 (6) A person contravenes this subsection if the person contravenes subsection (1), (2), (3) or (4).
Note: This subsection is a civil penalty provision (see section 1317E).