Document ID: chunk:federal_register_of_legislation:C2017A00017:clause:1_738y
Version: federal_register_of_legislation:C2017A00017
Segment Type: clause
Provision Reference: sch 1 cl 738Y
Character Range: 38073–40192

738Y  Other liabilities relating to defective CSF offer documents

Obligations giving rise to liabilities
 (1) A company must not offer securities under a CSF offer document if the document is defective.
Note 1: A defect may be corrected by a supplementary CSF offer document or a replacement CSF offer document (see section 738W).
Note 2: If this subsection is contravened, ASIC may make a stop order under section 739.
 (2) For the purposes of subsection (1), a company is taken to offer securities under a CSF offer document at all times, before the offer is closed, when the offer document is published on a platform of a CSF intermediary.
 (3) A CSF intermediary must not publish (or continue to publish) a CSF offer document on a platform of the intermediary if:
 (a) the document is defective; and
 (b) the intermediary knows that the document is defective.
Note 1: A defect may be corrected by a supplementary CSF offer document or a replacement CSF offer document (see section 738W).
Note 2: The question whether a CSF intermediary knows that a document is defective is affected by subsection 738Q(4).

Criminal liability
 (4) A person commits an offence if:
 (a) the person contravenes subsection (1) or (3) in relation to a defective CSF offer document; and
 (b) the statement, omission or new circumstance because of which the document is defective is materially adverse from the point of view of an investor.
Note: For exceptions to liability, see section 738Z.

Right to recover loss or damage
 (5) A person who suffers loss or damage because an offer of securities under a CSF offer document contravenes subsection (1) may recover the amount of the loss or damage from a person referred to in the following table if the loss or damage is one that the table makes the person liable for. This is so even if the person did not commit, and was not involved in, the contravention.

People liable on disclosure document
Item                                  These people ...                                                                                            are liable for loss or damage caused by ...