Document ID: chunk:federal_register_of_legislation:C2017A00017:clause:1_738z:p1
Version: federal_register_of_legislation:C2017A00017
Segment Type: clause
Provision Reference: sch 1 cl 738Z (pt 1/2)
Character Range: 42065–44752

738Z  Exceptions to liability under section 738Y

Lack of knowledge
 (1) A person:
 (a) does not commit an offence against subsection 738Y(4) in respect of a contravention of subsection 738Y(1) that relates to a CSF offer document; and
 (b) is not liable under subsection 738Y(5) in respect of a contravention of subsection 738Y(1) that relates to a CSF offer document;
if the person did not know that the CSF offer document was defective.
Note: In a prosecution for an offence, a defendant bears an evidential burden in relation to the matter in this subsection (see subsection 13.3(3) of the Criminal Code).
 (2) Subsection (1) does not apply to a liability of a CSF intermediary that is covered by item 7 of the table in subsection 738Y(5).

Reasonable reliance on information given by someone else—statements and omissions
 (3) A person does not commit an offence against subsection 738Y(4) in respect of a contravention of subsection 738Y(1), and is not liable under subsection 738Y(5) in respect of a contravention of subsection 738Y(1), because of a misleading or deceptive statement in, or an omission from, a CSF offer document if the person placed reasonable reliance on information given to them by:
 (a) if the person is a body—someone other than a director, employee or agent of the body; or
 (b) if the person is an individual—someone other than an employee or agent of the individual.
Note: In a prosecution for an offence, a defendant bears an evidential burden in relation to the matter in this subsection (see subsection 13.3(3) of the Criminal Code).
 (4) Subsection (3) does not apply to a liability of a CSF intermediary that is covered by item 7 of the table in subsection 738Y(5).
 (5) For the purposes of subsection (3), a person is not the agent of a body or individual merely because they perform a particular professional or advisory function for the body or individual.

Withdrawal of consent—statements and omissions
 (6) A person who is named in a CSF offer document as:
 (a) being a proposed director or underwriter; or
 (b) making a statement included in the document; or
 (c) making a statement on the basis of which a statement is included in the document;
does not commit an offence against subsection 738Y(1), and is not liable under subsection 738Y(5) in respect of a contravention of subsection 738Y(1), because of a misleading or deceptive statement in, or an omission from, a CSF offer document if the person publicly withdrew their consent to being named in the document in that way.
Note: In a prosecution for an offence, a defendant bears an evidential burden in relation to the matter in this subsection (see subsection 13.3(3) of the Criminal