ACT 125

COMPANIES ACT 1965 (REVISED - 1973)

PART XII - GENERAL

DIVISION 2 - OFFENCES

Section 364. False and misleading statements.

(1) Every corporation which advertises, circulates or publishes any statement of the amount of its capital which is misleading or in which the amount of nominal or authorized capital is stated without the words "nominal" or "authorized", or in which the amount of capital or authorized or subscribed capital is stated but the amount of paid-up capital or the amount of any charge on uncalled capital is not stated as prominently as the amount of authorized or subscribed capital is stated, and every officer of the corporation who knowingly authorizes, directs or consents to the advertising, circulation or publication shall be guilty of an offence against this Act. (2) Every person who in any return, report, certificate, balance sheet or other document required by or for the purposes of this Act makes or authorizes the making of a statement false or misleading in any material particular knowing it to be false or misleading or intentionally omits or authorizes the omission or accession of any matter or thing thereby making the document misleading in a material respect shall be guilty of an offence against this Act. Penalty: Imprisonment for ten years or two hundred and fifty thousand ringgit or both. (3) For the purposes of subsection (2) where a person at a meeting votes in favour of the making of a statement referred to in that subsection knowing it to be false, he shall be deemed to have authorized the making of that statement.