Section 188. Restriction on allotment in certain cases

(1) A public company having a share capital which does not issue a prospectus on or with reference to its formation shall not allot any of its shares or debentures unless a statement in lieu of prospectus which complies with the requirements of this Act has been lodged with the Registrar at least three days before the first allotment of either shares or debentures.

(2) If there is a contravention of this section, the company and every officer commit an offence and shall, on conviction, be liable—

(a) in the case of the company, to a fine not exceeding five million ringgit; and

(b) in the case of an officer, to imprisonment for a term not exceeding five years or to a fine not exceeding one million ringgit or to both.