Section 187
Application for moneys to be held in trust until allotment
(2)
There shall be no obligation or duty imposed on any bank or third person with whom any such moneys have been deposited to inquire into or to see the proper application of the moneys so long as the bank or person acts in good faith.
(3)
A company and every officer who, or a proposed company and every person named in the prospectus as a proposed director and every promoter who knowingly and wilfully authorizes or permits the default commit an offence and shall, on conviction, be liable—
(a)
in the case of the company or a proposed company, to a fine not exceeding five million ringgit; and
(b)
in the case of the person named in the prospectus as a proposed director or the promoter, to imprisonment for a term
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not exceeding five years or to a fine not exceeding one million ringgit or to both.