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694. Meaning Of “Offer To The Public”

(1) This section explains what is meant in this Chapter by an offer of securities to the public.
(2) An offer to the public includes an offer to any section of the public, however selected.
(3) An offer is not regarded as an offer to the public if it can properly be regarded, in all the circumstances, as-
(a) not being calculated to result, directly or indirectly, in securities of the company becoming available to persons other than those receiving the offer, or
(b) otherwise being a private concern of the person receiving it and the person making it.
(4) An offer is to be regarded (unless the contrary is proved) as being a private concern of the person receiving it and the person making it if-
(a) it is made to a person already connected with the company and, where it is made on terms allowing that person to renounce his rights, the rights may only be renounced in favour of another person already connected with the company, or
(b) it is an offer to subscribe for securities to be held under an employees’ share scheme and, where it is made on terms allowing that person to renounce his rights, the rights may only be renounced in favour of-
(i) another person entitled to hold securities under the scheme, or
(ii) a person already connected with the company.
(5) For the purposes of this section “person already connected with the company” means-
(a) an existing member or employee of the company,
(b) a member of the family of a person who is or was a member or employee of the company,
(c) the widow or widower of a person who was a member or employee of the company,
(d) an existing debenture holder of the company, or
(e) a trustee (acting in his capacity as such) of a trust of which the principal beneficiary is a person within any of subsections (5)(a) to (d).
(6) For the purposes of subsection 694(5)(b) the members of a person’s family are the person’s spouse and children (including step-children) and their descendants.