Liability in Lort for inducing
persons to invest
money in
certain cases.
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of the offence and shall be liable to be proceeded against and punished accordingly.
(2) Subject to subsection (3), for the purposes of this section, a person is deemed to be a director of a company or other body corporate if he occupies the position of a director by whatever name called, or is a person in accordance with whose directions or instructions the directors of the company or other body corporate or any of them act.
(3) A person shall not, by reason only that the directors of a company or other body corporate act on advice given by him in a professional capacity, be taken to be a person in accordance with whose directions or instructions those directors act.
Bu
Action in Tort
(1) Any person who, by any fraudulent, reckless, or negligent misrepresentation, induces another person---
(a) to enter into any agreement-
() for or with a view to acquiring, disposing of, sub- scribing 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 or securities or by reference to Auctuations in the value of securities or property other than securities; or
(b) to take part in any jnvestment arrangements in respect of
property other than securities,
shall be liable to pay compensation to that other person for any pecuniary loss that he has sustained by reason of his reliance on the misrepresentation.
(2) For the purposes of subsection (1) “fraudulent, reckless, or negligent misrepresentation" means-
(a) any statement-
() which to the knowledge of its maker was false, misleading, or deceptive;
(ii) which is false, misleading, or deceptive and was made recklessly; or
(iii) which is false, misleading, or deceptive and was made without reasonable care having been taken to ensure its accuracy;
(b) any promise-
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(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;
(ii) which was made recklessly or without reasonable care having been taken to ensure that it could be fulfilled; (c) any forecast—
(i) which to the knowledge of the maker of the fore- cast, was not justified on the facts known to him at the time when he made it;
(li) 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 without reasonable care baving been taken to ascertain the accuracy of those facts; or (d) any statement or forecast from which the maker of the stalement intentionally, recklessly, or negligently omitted a material fact of which he had knowledge or ought to have had knowledge, 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 mis- leading or deceptive.
(3) For the purposes of this section-
(a)
where any statement, forecast, or promise to which this section relates was made by a company or other body corporate, every person who was a director of the company or body corporate at the time when the state- ment, forecast, or promise was made shall, in the absence of evidence to the contrary, be taken to have caused or authorized it to be made; and
(b) a person is deemed to be a director of a company or other body corporate if he occupies the position of director by whatever name he may be called, or is a person in accordance with whose directions or instruc- tions the directors of the company or other body or any of them act; but a person shall not, by reason only that the directors of a company or other body corporate act on advice given by him in a professional capacity, be taken to be a person in accordance with whose directions or instructions those directors act.