Corporations Act 2001
CHAPTER 6D
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FUNDRAISING
PART 6D.2
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DISCLOSURE TO INVESTORS ABOUT SECURITIES (OTHER THAN FOR CSF OFFERS)
(a) all application money received from people applying for securities under the disclosure document; and
(b) all other money paid by them on account of the securities before they are issued or transferred;
(c) the securities are issued or transferred; or
(d) the money is returned to the applicants. 722(2) [ Return of trust money]
Division 5
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Procedure for offering securities
SECTION 722
APPLICATION MONEY TO BE HELD ON TRUST
722(1)
[
Money in trust]
If a person offers securities for issue or sale under a disclosure document, the person must hold:
(a) all application money received from people applying for securities under the disclosure document; and
(b) all other money paid by them on account of the securities before they are issued or transferred;
in trust under this section for the applicants until:
(c) the securities are issued or transferred; or
(d) the money is returned to the applicants. 722(2) [ Return of trust money]
If the application money needs to be returned to an applicant, the person must return the money as soon as practicable.
722(3) [ Strict liability offence]An offence based on subsection (1) or (2) is an offence of strict liability.
Note: For strict liability , see section 6.1 of the Criminal Code .
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