Section 40
Section 40
Any person who, being a director or manager of a licensed borrowing company—
(a)
fails to take reasonable steps to secure compliance by the licensed borrowing company with the requirements of this Act; or
(b)
fails to take reasonable steps to ensure the veracity of any statement submitted under the provisions of this Act, is guilty of an offence and shall on conviction, be liable to a fine not exceeding/five thousand dollars or to imprisonment for a term not exceeding three years or to both.
(2)
In any proceedings against a person under sub-section (1) it shall be a defence to prove that he had reasonable grounds to believe that—
(a)
another person in the licensed borrowing company was charged with the duty of securing compliance with the requirements of the Act; or
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(ii)
another person was charged with the duty of ensuring that those statements were true, and
(b)
the other person was in a position to discharge the duty with competence.