Repayment of money if disclosure statement condition not met
150E Repayment of money if disclosure statement condition not met
If —
a person offers shares under a disclosure statement; and
the disclosure statement states (expressly or impliedly) that it is a condition that the shares will not be issued or transferred unless —
applications for a minimum number of the shares are received from members, or persons eligible to become members, of the co‑operative; or
a minimum amount is raised;
and
that condition is not satisfied within 4 months after the date of the disclosure statement,
the person must repay the money received by the person in respect of any applications for the shares made under the disclosure statement that have not resulted in an issue or transfer of the shares.
Penalty for this subsection: a fine of $2 500, or imprisonment for 6 months, or both.
For the purpose of working out whether a condition referred to in subsection (1) has been satisfied, a person who has agreed to take shares as underwriter is taken to have applied for those shares.
Despite The Criminal Code section 23B(2), it is immaterial for the purposes of subsection (1) that any event occurred by accident.
[Section 150E inserted: No. 7 of 2016 s. 42.]
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