Section 702 — Corporations Act 2001 (Cth)

For the purposes of this Chapter:

(a) an offer of an option over securities is not taken to be an offer of the underlying securities; and

(b) the grant of an option without an offer of the option is taken to be an offer of the option; and

(c) an offer to grant an option is taken to be an offer to issue the security constituted by the option.

Note 1: If a disclosure document is needed for the option and there is no further offer involved in exercising the option, the issue or sale of the underlying securities on the exercise of the option does not need a disclosure document.

Note 2: Paragraph (b)—the grant of the option will not require a disclosure document if no consideration is payable on the grant or the exercise of the option (see subsections 708(15) and (16)).

Related sections

• s 677 — Material effect on price or value
• s 678 — Application of Criminal Code to offences based on subsection 674(2), 674(5) or 675(2)
• s 700 — Coverage of the fundraising rules
• s 703 — Chapter may not be contracted out of
• s 703A — Operating a clearing and settlement facility is not offering securities etc.
• s 703B — Part generally does not apply in relation to CSF offers

Research how courts apply s 702

BriefBridge searches Australian caselaw by meaning — every answer cited to the paragraph.