wilcoxSections 707, 708A and 727 of the Corporations Act contain...

wilcox
Sections 707, 708A and 727 of the Corporations Act contain the ‘on-sale provisions’ which establish a framework to ensure that retail investors receive adequate disclosure where shares are first issued without disclosure (for example, to sophisticated investors) and then sold on market. The effect is that recipients of securities without disclosure are prohibited from selling those securities within 12 months of their issue until there has first been disclosure to the market.
That disclosure usually takes the form of a cleansing notice from the company (if the company can satisfy s 708A(5) of the Corporations Act), or otherwise a cleansing prospectus under s 708A(11) of the Corporations Act.A sale of securities issued without disclosure within 12 months of issue, in the absence of a cleansing notice or cleansing prospectus, is a breach by the seller of s 727(1) of the Corporations Act. It carries potential civil and criminal liability for the seller, including up to 15 years imprisonment. Further, such a breach may result in the company incurring liability to the ASX, having its securities suspended from trading by the ASX, or being the subject of civil claims brought against it by any current or former aggrieved shareholders.
Yes, I can see what NG submitted, but I don’t see any cleansing notices issued, hence the relief sought.
I was involved in one of the placements and definitely NO cleansing notice was issued as required.I was deceived at the time as I was told other investors were investing.The fact now seems that the majority of the other investors was Notsag.( Gaston spelt backwards).