Labuan Financial Services and Securities Act 2010 · Updated to 15 Oct 2022 · Part II · Securities
15. Criminal liability for misstatement in prospectus
Feedback & supportWhere in any prospectus, or in any advertisement of the kind referred to in section 10, there is an untrue statement or willful non-disclosure, any person who authorized or caused the issue of the prospectus or advertisement commits an offence and shall, on conviction, be liable to a fine not exceeding one million
prospectus
“prospectus” means any prospectus, notice, circular, advertisement or invitation inviting applications or offers to subscribe for or purchase securities, or offering any securities for subscription or purchase;
ringgit or to imprisonment for a term not exceeding three years or to both unless he proves that the statement or non-disclosure was immaterial or that he had reasonable ground for believing and did, up to the time of the issue of the prospectus, believe that the statement was true or that the non-disclosure was immaterial.
A person shall not be deemed to have authorized or caused the issue of a prospectus by reason only of his having given the consent required by this Division to the inclusion therein of a statement purporting to be made by him as an expert.
person
“person” includes a corporation, partnership, a body of persons, corporate or unincorporated and a corporation sole;