Document ID: chunk:federal_register_of_legislation:C2025C00185:section:731
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 731
Character Range: 2826807–2827847

731  Due diligence defence for prospectuses

Reasonable inquiries and reasonable belief—statements
 (1) A person does not commit an offence against subsection 728(3), and is not liable under section 729 for a contravention of subsection 728(1), because of a misleading or deceptive statement in a prospectus if the person proves that they:
 (a) made all inquiries (if any) that were reasonable in the circumstances; and
 (b) after doing so, believed on reasonable grounds that the statement was not misleading or deceptive.

Reasonable inquiries and reasonable belief—omissions
 (2) A person does not commit an offence against subsection 728(3), and is not liable under section 729 for a contravention of subsection 728(1), because of an omission from a prospectus in relation to a particular matter if the person proves that they:
 (a) made all inquiries (if any) that were reasonable in the circumstances; and
 (b) after doing so, believed on reasonable grounds that there was no omission from the prospectus in relation to that matter.