1964_BANKING_ORDINANCE — Page 80

1987 Ed.}

Banking

[CAP. 155

79

(2) For the purposes of subsection (1), “fraudulent, reckless or negligent misrepresentation" means—

(a) any statement-

(i) which, to the knowledge of the maker of the statement, was false, misleading or deceptive;

(ii) which was false, misleading or deceptive and was made recklessly; or

(iii) which was false, misleading or deceptive and was made without reasonable care having been taken to ensure its accuracy;

(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

(iii) 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 forecast, was not justified on the basis of facts known to him at the time when he made it; or

(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 without reasonable care having been taken to ascertain the accuracy of those facts; or

(d) any statement or forecast from which the maker intentionally, recklessly or negligently omitted a material fact with the result that the statement or forecast was thereby rendered false, misleading or deceptive.

(3) For the purposes of this section, where any statement, promise or forecast to which this section relates was made by a company, every person who was a director or controller of the company at the time when the statement, promise or forecast was made shall, until the contrary is proved, be deemed to have caused or permitted it to be made.

(4) This section does not affect any liability of any person at common law.

(5) An action may be brought under this section notwithstanding that the evidence on which the action is or will be based, if substantiated, discloses the commission of an offence and no person has been charged with or convicted of the offence.

(6) For the purposes of this section "company" means, in addition to a company as defined in section 2, any other body of persons, corporate or unincorporate.

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