CAP. 335]
Protection of Investors
3.
[1989 Ed.
(ii) to defer taking possession of the property; and
(iii) to transfer or retransfer the ownership of the property to a person who is a party to, or is referred to in, the arrangements.
Offences
Offence fraudulently or recklessly
(Added 9 of 1983 s. 3)
to induce persons to invest money
(1) Any person who, by any fraudulent or reckless misrepresentation, induces another person-
(a) to enter into or offer to enter into any agreement-
(i) for or with a view to acquiring, disposing of, subscribing for
or underwriting securities; or
(ii) the purpose or effect, or pretended purpose or effect, of which is to secure to any of the parties to the agreement a profit from the yield of securities or by reference to fluctuations in the value of securities or property other than securities; or
(b) to take part in or offer to take part in any investment
arrangements in respect of property other than securities, shall be guilty of an offence.
(2) For the purposes of subsection (1) "fraudulent or reckless misrepresentation" means-
(a) any statement-
(i) which to the knowledge of its maker was false, misleading,
or deceptive; or
(ii) which is false, misleading, or deceptive and was made
recklessly;
(b) any promise-
(i) which the maker of the promise had no intention of
fulfilling;
(ii) which, to the knowledge of the maker of the promise, was
not capable of being fulfilled; or (Amended L.N. 56 of 1974)
(iii) which was made recklessly;
(c) any forecast-
(i) which, to the knowledge of the maker of the forecast, was not justified on the facts known to him at the time when he made it; or (Amended L.N. 38 of 1974)
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