Document ID: chunk:federal_register_of_legislation:C2004A01097:clause:1_6
Version: federal_register_of_legislation:C2004A01097
Segment Type: clause
Provision Reference: sch 1 cl 6
Character Range: 4809–6047

6  Subsection 128F(5)
Repeal the subsection, substitute:

Issues that always fail the public offer test

 (5) The issue of a debenture by a company does not satisfy the public offer test if, at the time of the issue, the company knew, or had reasonable grounds to suspect, that:
 (a) the debenture, or an interest in the debenture, was being, or would be, acquired either directly or indirectly by an associate of the company; and
 (b) either:
 (i) the associate is a non‑resident and the debenture or interest was not being, or would not be, acquired by the associate in carrying on a business in Australia at or through a permanent establishment of the associate in Australia; or
 (ii) the associate is a resident of Australia and the debenture or interest was being, or would be, acquired by the associate in carrying on a business in a country outside Australia at or through a permanent establishment of the associate in that country; and
 (c) the debenture or interest was not being, or would not be, acquired by the associate in the capacity of:
 (i) a dealer, manager or underwriter in relation to the placement of the debenture; or
 (ii) a clearing house, custodian, funds manager or responsible entity of a registered scheme.