Clause 250

No person shall make an offer to the public of shares, debentures, or units of shares or debentures, for subscription or purchase, or an invitation to the public to subscribe for or purchase shares, debentures, or units of shares or debentures, or allot, issue or sell shares or debentures, or units of shares or debentures, to the public, and, in the case of a corporation or proposed corporation, no officer or promoter shall authorise or permit an offer to the public of shares, debentures, or units of shares or debentures, for subscription or purchase, or an invitation to the public to subscribe for or purchase shares, debentures, or units of shares or debentures to be made, or the allotment, issue or sale of shares or debentures, or units of shares or debentures to the public, on the basis of a prospectus or profile statement after the expiration of 6 months from the date of registration by the Authority of the prospectus in relation to such offer, invitation, allotment, issue or sale.

If default is made in complying with subsection (1), the person and, in the case of a corporation or proposed corporation, every officer or promoter shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000 or to imprisonment for a term not exceeding 12 months or to both and, in the case of a continuing offence, to a further fine not exceeding $5,000 for every day or part thereof during which the offence continues after conviction.

Where an allotment, issue or sale of shares or debentures, or units of shares or debentures, is made on the basis of a prospectus or profile statement after the expiration of 6 months from the date of registration by the Authority of the prospectus in relation to such allotment, issue or sale, such allotment, issue or sale shall not, by reason only of that fact, be voidable or void.