1964_PROTECTION_OF_INVESTORS_ORDINANCE — Page 14

1989 Ed.]

Protection of Investors

[CAP. 335

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(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 fluctuations in the value of securities or property other than securities; or

(b) to take part in any investment 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-

(i) 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-

(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 (Amended L.N. 56 of 1974)

(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 facts known to him at the time when he made it; or (Amended L.N. 38 of 1974; 56 of 1974)

(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 of the statement 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 misleading or deceptive.