Corporations Act 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

PART 7.9 - FINANCIAL PRODUCT DISCLOSURE AND OTHER PROVISIONS RELATING TO ISSUE, SALE AND PURCHASE OF FINANCIAL PRODUCTS  

Division 5A - Unsolicited offers to purchase financial products off-market  

SECTION 1019J   OBLIGATION TO UPDATE MARKET VALUE  

1019J(1)   [ Application]  

This section applies if:


(a) the offer document by which an offer to which this Division applies is made states the market value of the financial product to which the offer relates as at the date of the offer; and


(b) while the offer remains open, there is an increase or decrease in the market value of the product when compared to:


(i) unless subparagraph (ii) applies - the market value (the currently stated value ) stated as mentioned in paragraph (a); or

(ii) if this section has previously applied in relation to the offer and one or more supplementary offer documents have been sent to the offeree - the market value (the currently stated value ) stated as mentioned in paragraph (3)(c) in the supplementary offer document most recently sent to the offeree; and


(c) the increase or decrease, expressed as a percentage of the currently stated value, exceeds the percentage specified in the regulations [ sic ] for the purposes of this paragraph.

1019J(2)   [ Choices open to offeror]  

The offeror must, within 10 business days of this section applying because of a particular increase or decrease in value:


(a) withdraw the offer by sending a withdrawal document, in printed or electronic form, to the offeree in accordance with paragraphs 1019E(1) (a) and (b):


(i) that identifies the offeror and that is dated; and

(ii) that contains a statement to the effect that the offer is withdrawn because of a change in the market value of the product, and that withdrawal for this reason is permitted even within 1 month of the date of offer; or


(b) send a supplementary offer document (see subsection (3)) in printed or electronic form to the offeree in accordance with paragraphs 1019E(1) (a) and (b).

Nothing in section 1019G affects the effectiveness of a withdrawal of the offer under paragraph (a) of this subsection.

1019J(3)   [ Contents of supplementary offer]  

A supplementary offer document must:


(a) identify the offer to which it relates; and


(b) be dated; and


(c) state the market value of the financial product to which the offer relates as at that date; and


(d) state the price that was stated in the offer document as required by paragraph 1019I(2) (a), and contain a statement to the effect that this is still the price at which the offeror wishes to purchase the product and that the terms of the offer remain unchanged; and


(e) contain a statement to the effect that the document has been prepared because the market value of the product has changed.

1019J(4)   [ Wording and presentation]  

A supplementary offer document must be worded and presented in a clear, concise and effective manner.

1019J(5)   [ Stating a market value]  

In this section, a reference to stating a market value of a financial product includes a reference to purporting to state the market value of the product.


 

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