XN000022-1972-10-06 — Page 4

Friday, October 6, 1972

(5) Criminal sanctions and civil liability will

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attach to anyone responsible for mis-statements in prospectuses, including experts, such as valuers, who have consented to its issue.

(6) The Registrar of Companies will be empowered to

refuse to register prospectuses that do not comply with the statutory requirements, or contain information likely to mislead, but he will not be responsible for the contents of a prospectus. If the Registrar refuses to... register a prospectus, the shares to which

it relates may not be offered to the public.

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The maximum penalty imposed under the proposed new legislation covers

the issuing of prospectuses containing untrue statements.

Any person who authorises the issue of such a prospectus will be

liable on conviction on indictment to a fine of $50,000 and to imprisonment

for two years; or on summary conviction to a fine of $10,000 and imprisonment

for six months.

The spokesman added that a number of other bills dealing with aspects

of the First Report of the Companies Law Revision Committee, which dealt with

the protection of investors, are now being prepared.

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