1974-HKRS28-16-22_Part02 — Page 35

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“issue”, in relation to an advertisement, invitation, or document, includes publish, circulate, distribute, or disseminate the advertisement, invitation, or document: and also includes causing the advertisement, invitation, or document to be issued:

let. 1958, p. 45. "investment arrangements". in relation to property other than securities, means arrangements the purpose or effect, or pretended purpose or effect, of which is to enable persons taking part in the arrangements (whether by becoming owners of the property or otherwise) to participate in or receive- (a) profits or income alleged to arise or to be likely to arise from the acquisition, holding, management, or disposal of the property or any part of the properly; or (b) sums to be paid or alleged to be likely to be paid out

of any such profits or income:

"invitation" includes an offer, and also includes an invitation

made by means of a telephone call or personal visit; "securities" has the same meaning as in the Securities Ordinance

1974.

(2) For the purposes of this Ordinance-

(a) "advertisement" includes every form of advertising.

whether notified or published-

(b)

(c)

(1) in a newspaper, magazine, journal, or other periodical publication;

(ii) by the display of posters or notices;

(iii) by means of circulars, brochures, pamphlets, or handbills;

(iv) by an exhibition of photographs or cinemato- graph films; or

(v) by way of sound broadcasting or television, and references to the issue of an advertisement shall be construed accordingly;

"document" includes a circular, brochure. pamphlet. poster, handbill, prospectus, and any other document which is directed at or likely to be read by the public; and also includes any newspaper, magazine, journal, or other periodical publication;

au advertisement issued by any person by way of display or exhibition in a public place shall be treated as being issued by him on every day on which he causes or authorizes it to be displayed or exhibited;

(d) an advertisement, invitation, or document which con- sists of or contains information likely to lead, directly or indirectly, to the doing by members of the public of any act mentioned in paragraphs (a) and (b) of section 3(1) shall be treated as being an advertisement, invita- tion, or document which is or contains an advertisement or invitation to the public to do that act;

(e) an advertisement, invitation, or document issued by one person on behalf of another shall be treated as an advertisement, invitation, or a document, as the case may be, issued by that other person.

Offences

3. (0) Any person who, by any fraudulent or reckless mis- Offence representation, induces another person-

(a) to enter into or offer to enter into any agreement-

fraudulently

or recklessly to induce persans

(D) for or with a view to acquiring, disposing of, sub- la invest scribing for or underwriting securities; or

money. [7. 1998, 6, 45,

(ii) the purpose or effect, or pretended purpose or X DI 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 aecurities 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 reck- less misrepresentation" means-

(a) any statement-

() 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;

(i) which was made recklessly;