Section 168. Criminal liability for misstatement in prospectus

(1) No person shall authorize or cause the issuance of a prospectus that contains—

(a) any statement or information that is false or misleading; or

(b) a material omission from any statement or information.

(2) For the purposes of this section, it shall be a defence for a person if he proves that—

(a) the statement or omission is immaterial; or

(b) he has made all enquiries as are reasonable in the circumstances and after making such enquiries, he has reasonable grounds to believe and did believe the statement is true or the omission is immaterial up to the time of the issue of the prospectus.

(3) Any person who contravenes subsection (1) commits an offence and shall, on conviction, be liable to imprisonment for a term not exceeding five years or to a fine not exceeding one million ringgit or to both.