ASIC Class Order [CO 00/0189]

Overview

The F2007B00040 legislative instrument, enacted in 2000, provides a specific exemption under subsection 741(1) of the Corporations Law, aiming to address procedural gaps in handling securities applications. This exemption was issued by the Australian Securities and Investments Commission, operating under the authority delegated by the relevant legislature, to streamline the process for dealing with securities applications that require new disclosure documents. The policy objective is to ensure that the original application forms remain consistent with those used for new disclosure documents, thereby facilitating a smoother transition and reducing administrative burdens for entities issuing securities. The exemption allows a person who has offered securities to bypass certain requirements under subsections 723(1) and 727(2) of the Law, provided they meet the specific conditions outlined in Schedule A. These conditions include dealing with original applications under paragraphs 724(2)(b) or (c) and ensuring that the application forms remain unchanged. Schedule B specifies the extent of the exemption, which pertains to the need for reasonable grounds to believe that the original applications were made on forms that are either included in or directly derived from the new disclosure documents. This legislative instrument seeks to balance regulatory compliance with operational efficiency.

Scope and Application

The legislative instrument F2007B00040, under subsection 741(1) of the Corporations Law, provides specific exemptions to certain requirements of the Law for persons offering securities. This exemption applies in a scenario where a person has offered securities under a disclosure document and subsequently needs to deal with applications for securities that have not resulted in an issue or transfer of securities. The exemption comes into play if the person elects to handle these original applications under paragraphs 724(2)(b) or (c) of the Law, necessitating the provision of new disclosure documents to the applicants. The exemption is particularly relevant when the application forms used for the new disclosure documents are identical to those used for the original applications. This relief extends to exempting the person from the requirement to have reasonable grounds to believe that the original applications were made on forms that are either included in or accompanied by the new disclosure documents, or copied or directly derived from such forms. Additionally, it exempts the person from the obligation to include or accompany an application form referrable to the new disclosure documents when providing these documents to applicants. This exemption is geographically applicable within the Commonwealth of Australia and applies to any person offering securities under the specified conditions.

Key Provisions

The legislative instrument in question, under subsection 741(1) of the Corporations Law, provides an exemption to certain parties from specific subsections of the Law. Specifically, it exempts a person from subsections 723(1) and 727(2) of the Law, contingent upon the circumstances outlined in Schedule A and the extent of the exemption detailed in Schedule B. According to Schedule A, this exemption applies when a person has offered securities under a disclosure document and subsequently needs to handle applications for those securities that did not result in the issue or transfer of securities, referred to as "the original applications". If the person opts to deal with these original applications under paragraphs 724(2)(b) or (c) of the Law, which necessitates providing certain other documents (the "new disclosure documents") to the applicants, the exemption provisions come into play. Importantly, this exemption is applicable only if the application forms related to the new disclosure documents are identical to the forms used for the original applications. This exemption imposes specific obligations and requirements on the parties it governs. For instance, the person must ensure that the new disclosure documents are provided to the applicants if they have chosen to handle the original applications under paragraphs 724(2)(b) or (c) of the Law. Additionally, the application forms used for the new disclosure documents must be identical to those used for the original applications. By adhering to these conditions, the person can avail themselves of the exemption from certain requirements of the Corporations Law. Failure to comply with the provisions of this legislative instrument may result in various consequences. While the specific offences, penalties, or consequences are not detailed within the text of this legislative instrument, breaches of the Corporations Law generally can lead to civil or criminal penalties. These may include substantial fines, imprisonment, or both, depending on the severity and nature of the breach. The maximum penalties for breaches of the Corporations Law can vary widely, often reflecting the seriousness of the offence and the impact of the breach on stakeholders. It is important for parties subject to this Act to fully understand and comply with its requirements to avoid potential legal repercussions.