This notice is the Securities Act (Stage Three/Four Limited) Exemption Notice 2003.

This notice comes into force on the day after the date of its notification in the Gazette.

This notice expires on the close of 31 August 2008.

(1) In this notice, unless the context otherwise requires,—

(2) Any term or expression that is defined in the Act or the Regulations and used, but not defined, in this notice has the same meaning as in the Act or the Regulations.

The company, the developer, and every person acting on behalf of either or both of them are exempted, in respect of any specified securities, from sections 33, 37, 37A, 38A, and 54B(3) of the Act.

The exemption in clause 5 is subject to the following conditions:

• (a) the developer has supplied to each subscriber for specified securities, before subscription, copies of the following documents:

  • (i) the constitution; and

  • (ii) the deed of encumbrance for execution by the subscriber; and

  • (iii) the sale and purchase agreement dated 22 August 2001 providing for the transfer of communal facilities from the developer to the company; and

  • (iv) the proposed sale agreement relating to that subscriber; and

• (b) the specified securities are subscribed for by entering into a sale agreement with the developer; and

• (c) deposit money paid by a subscriber for specified securities is held in any of the following trust accounts until the sale agreement becomes unconditional:

  • (i) a trust account operated by a solicitor under the Law Practitioners Act 1982; or

  • (ii) a trust account operated by a real estate agent under the Real Estate Agents Act 1976; or

  • (iii) a trust account operated by a trustee company under the Trustee Companies Act 1967; and

• (d) no settlement of a sale agreement is completed unless—

  • (i) the communal facilities are owned legally and beneficially by the company; and

  • (ii) if any right or interest in land is included in the communal facilities, the company's interest in that land is registered on the certificate of title, or computer register, for that land under the Land Transfer Act 1952; and

• (e) all money paid to the company by its shareholders under the constitution is applied solely for the purposes of—

  • (i) owning, administering, and maintaining the communal facilities; or

  • (ii) administering and enforcing a scheme for the regulation and control of matters relating to the provision of water services to residential properties; and

• (f) the constitution provides that—

  • (i) the shareholders of the company have the right to use and enjoy the communal facilities in accordance with the constitution and deed of encumbrance; and

  • (ii) the shareholders of the company have the right to vote at meetings of shareholders of the company; and

  • (iii) levies, fees, or subscriptions payable to the company by its shareholders are determined by the shareholders at a shareholders' meeting of the company; and

  • (iv) the company does not have as objects the carrying on of trading activities or the carrying on of a business for profit; and

  • (v) the company cannot carry on activities other than those required by, or associated with, the provision of the water supply system for the residential properties and the regulation of the restrictive covenants provided for in Schedule C of the company's constitution; and

• (g) it is a term of the contract for the specified securities that specified securities can be obtained only on the purchase of residential property and on resale must be sold with that residential property; and

• (h) it is a term of the offer of the specified securities that the developer provides to a prospective purchaser of residential property, within 5 business days after receiving a request, a copy of the most recent audited financial statements of the company; and

• (i) it is a term of the offer of the specified securities that the financial statements of the company are audited annually and distributed to shareholders as soon as reasonably practicable after each audit is completed, and in any event no later than 5 months after the end of each accounting period of the company.

(1) Clause 6(b) does not apply to specified securities that are subscribed for by a person who entered into a sale agreement with the developer before the date on which this notice comes into force.

(2) Clause 6(g) does not apply, to the extent that it requires it to be a term of the contract for the specified securities that specified securities can be obtained only on the purchase of residential property, to a contract for specified securities entered into by a person who purchased a residential property before the date on which this notice comes into force.