Floated transaction company to take reasonable steps to prevent contraventions of ownership restrictions
4 Floated transaction company to take reasonable steps to prevent contraventions of ownership restrictions
A floated transaction company must take all reasonable steps to ensure that a prohibited ownership situation does not exist in relation to the company.
A floated transaction company is guilty of an offence if it engages in conduct that contravenes a requirement of subclause (1).
Maximum penalty—500 penalty units.
Note.
If a floated transaction company contravenes this subclause, clause 22 operates to make each person who is a director of the company or who is concerned in the management of the company liable for the offence if the person knowingly authorised or permitted the contravention.
An offence under subclause (2) is a strict liability offence.
This Act’s bill:Explanatory memorandumSecond reading speech
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