Labuan Islamic Financial Services and Securities Act 2010 · Updated to 15 Oct 2022 · Chapter 3
41. Investors’ rights
Feedback & supportIf a registered Islamic public fund publishes a prospectus or any amendment that contains any misrepresentation relating to any of the matters required to be disclosed under subsection 16(5), a person who purchased any securities pursuant to such prospectus or amendment to the prospectus is deemed to have relied upon the misrepresentation and shall have the rights provided in subsection (2).
registered Islamic public fund
“registered Islamic public fund” means an Islamic public fund registered under section 38;
A person referred to in subsection (1) may elect to exercise a right of action—
for the rescission of the purchase; or
for damages, jointly and severally against the Islamic public fund and every person who, while aware of the misrepresentation, signed the prospectus or amendment to the prospectus and consented to its publication and lodged or caused it to be signed or published and filed.
For the purposes of this section, “misrepresentation” means—
any untrue or misleading statement of any of the matters required to be disclosed under subsection (1); or
an omission to disclose any of such matters.
No person shall be liable under this section if he proves that the purchaser purchased the shares offered by the prospectus or amendment to the prospectus with knowledge of the misrepresentation.
The right of action for rescission or damages conferred by subsection (2) is in addition to any other right which the aggrieved party may have under any written law.