1989 Ed.]
Protection of Investors
[CAP. 335
5
(ii) which was not justified on the facts known to the maker of the forecast at the time when he made it and was made recklessly; or (Amended L.N. 56 of 1974)
(d) any statement or forecast from which the maker of the statement intentionally or recklessly omitted a material fact, with the result that the statement was thereby rendered untrue, misleading, or deceptive, or, as the case may be, the forecast was thereby not capable of being justified or was thereby rendered misleading or deceptive.
(3) Any person who is guilty of an offence against this section shall be liable on conviction on indictment to a fine of $1,000,000 and to imprisonment for 7 years.
[cf. 1958 c. 45 s. 13 U.K.]
4.
Offence to issue advertisements and documents relating to investments in certain cases
(1) Subject to subsections (2) and (3), no person shall—
(a) issue, or have in his possession for the purposes of issue, any advertisement or invitation which to his knowledge is or contains an invitation to the public to do any of the acts referred to in section 3(1)(a) and (b); or
(b) issue, or have in his possession for the purposes of issue, any document which to his knowledge contains an advertisement or invitation to the public to do any of those acts.
(2) Subsection (1) does not apply in relation to-
(a) the issue of a prospectus which complies with or is exempt from compliance with Part II of the Companies Ordinance (Cap.32) or, in the case of a company incorporated outside Hong Kong, complies with or is exempt from compliance with Part XII of that Ordinance;
(b) the issue of a document relating to securities of a body corporate incorporated in Hong Kong that is not a company registered under the Companies Ordinance (Cap.32), being a document which—
(i) would, if the body corporate were a registered company, be a prospectus to which section 38 of the Companies Ordinance (Cap.32) applies, or would apply if not excluded by subsection (5)(b) of that section or by section 38A of that Ordinance; and
(ii) contains all the matters which, by virtue of Part XII of that Ordinance, it would be required to contain if the body corporate were a company incorporated outside Hong Kong and the document were a prospectus issued by that company;