Ann: Cleansing Statement, page-18

It happens more regularly than it should is my observation. The trading halt has to be called because any trading in the shares that are uncleansed within twelve months of their issue is technically illegal and the legal liability falls onto the holder that sells those shares who in turn could hold the company liable. If shares aren't issued and traded in accordance with the Corporations Act then potentially it is not trivial. The purpose of cleansing notices or cleansing prospectuses in the corporations act is, in principle, sound. That shareholders should be made aware when shares are issued, how many were issued, the reason they were issued, under what authority they were issued and the intended use of the funds raised, if any, prior to those shares becoming transferable and tradable on markets. I made a post with a link to more info a few weeks ago when the announcement was made.