Corporations Act 2001

CHAPTER 6D - FUNDRAISING  

PART 6D.3 - PROHIBITIONS, LIABILITIES AND REMEDIES (OTHER THAN FOR CSF OFFERS)  

Division 1 - Prohibitions and liabilities  

SECTION 736   SECURITIES HAWKING PROHIBITED  

736(1)  

A person must not offer securities for issue or sale in the course of, or because of, an unsolicited:

(a) meeting with another person; or

(b) telephone call to another person.

736(1A)  

Subsection (1) does not apply if the offer is exempted under subsection (2).

Note: A defendant bears an evidential burden in relation to the matter in subsection (1A), see subsection 13.3(3) of the Criminal Code .

736(1B)  

An offence based on subsection (1) is an offence of strict liability.

Note: For strict liability , see section 6.1 of the Criminal Code .

736(2)  
Subsection (1) does not prohibit an offer of securities if:

(a) the offer does not need a disclosure document because of subsection 708(8) or (10) (sophisticated investors); or

(b) the offer does not need a disclosure document because of subsection 708(11) (professional investors); or

(c) the offer is an offer of listed securities made by telephone by a licensed securities dealer; or

(d) the offer is made to a client by a licensed securities dealer through whom the client has bought or sold securities in the last 12 months; or

(e) the offer is made under an eligible employee share scheme.