CORPORATIONS ACT 2001 - SECT 731 Due diligence defence for prospectuses

CORPORATIONS ACT 2001 - SECT 731

Reasonable inquiries and reasonable belief--statements

  (1)   A person does not commit an offence against subsection   728(3), and is not liable under section   729 for a contravention of subsection   728(1), because of a misleading or deceptive statement in a prospectus if the person proves that they:

  (a)   made all inquiries (if any) that were reasonable in the circumstances; and

  (b)   after doing so, believed on reasonable grounds that the statement was not misleading or deceptive.

Reasonable inquiries and reasonable belief--omissions

  (2)   A person does not commit an offence against subsection   728(3), and is not liable under section   729 for a contravention of subsection   728(1), because of an omission from a prospectus in relation to a particular matter if the person proves that they:

  (a)   made all inquiries (if any) that were reasonable in the circumstances; and

  (b)   after doing so, believed on reasonable grounds that there was no omission from the prospectus in relation to that matter.