New South Wales Consolidated Acts

LOAN FUND COMPANIES ACT 1976 - SECT 57

57 Powers of Supervisor with respect to prospectuses

(1) A prospectus relating to a loan fund company or a company proposing to operate a loan fund scheme shall not be issued, circulated or distributed before the expiration of 7 days after the date on which a copy of the proposed prospectus has first been lodged with the Supervisor.

(2) Where a copy of a proposed prospectus has been lodged with the Supervisor in accordance with subsection (1), the Supervisor may, by notice served on the company concerned within 7 days after the date of that lodgment, require:

(a) that, before the prospectus is issued, circulated or distributed, there be included in the prospectus such information relating to the rights and obligations of persons who may apply for, subscribe for, purchase or otherwise acquire shares or options to acquire shares in the company as may be specified in the notice, and

(b) that that information be in such form, or be presented in such manner, as may be so specified.

(3) Where the Supervisor has served a notice in accordance with subsection (2), a prospectus to which the notice relates shall not be issued, circulated or distributed unless the requirements of that notice have been complied with.

(4) If a prospectus is issued, circulated or distributed in contravention of subsection (1) or (3), the company concerned and every person who is knowingly a party to that issue, circulation or distribution is guilty of an offence and is liable on conviction to a penalty not exceeding 5 penalty units.

(5) Nothing in this section affects the operation of Part IV of the Companies (New South Wales) Code with respect to a company to which this section applies and, where any requirement imposed under this section is inconsistent with a provision of that Part, that requirement shall, to the extent of that inconsistency, have no force or effect.