Section 40
Criminal liability for misstatement in prospectus or product disclosure statement
No person shall authorize or cause the issuance of a prospectus that contains—
(a)
any statement or information that is false or misleading;
or
(b)
any material omission from any statement or information.
(2)
For the purposes of this section, it shall be a defence for a person if he proves either that—
(a)
the statement or omission is immaterial; or
(b)
he has made all enquiries as are reasonable in the circumstances and after making such enquiries, he has reasonable grounds to believe and did believe the statement is true or the omission is immaterial up to the time of the issue of the prospectus.
(3)
This section shall be applicable to product disclosure statement issued by a management company and any references to
Interest Schemes
53
“prospectus” shall be construed as references to “product disclosure statement”.
(4)
Any person who contravenes subsection (1) commits an offence and shall, on conviction, be liable to imprisonment for a term not exceeding five years or to a fine of three million ringgit or to both.
Registrar and persons not to be taken to have authorized or caused issuance of prospectus or product disclosure statement