Members
 
 
 
ACT 125
COMPANIES ACT 1965 (REVISED - 1973)
PART XII - GENERAL
DIVISION 2 - OFFENCES

 
Section 366. Fraudulently inducing persons to invest money.
 
Section 366. Fraudulently inducing persons to invest money. (COMPANIES ACT 1965 (REVISED - 1973) - ACT 125) (1) Any person who, by any statement, promise or forecast which he knows to be misleading, false or deceptive or by any dishonest concealment of material facts or by the reckless making of any statement, promise or forecast which is misleading, false or deceptive, induces or attempts to induce another person to enter into or offer to enter into—

    (a) any agreement for or with a view to acquiring, disposing of, subscribing in or underwriting marketable securities or lending or depositing money to or with any corporation; or

    (b) any agreement the purpose or pretended purpose of which is to secure a profit to any of the parties from the yield of marketable securities or by reference to fluctuations in the value of marketable securities,

shall be guilty of an offence against this Act.

Penalty: Imprisonment for ten years or two hundred and fifty thousand ringgit or both.

Conspiracy

(2) Any person guilty of conspiracy to commit any offence against subsection (1) shall be punishable as if he had committed such an offence.

Obtaining payment of money, etc., to company by false promise of director, member, etc., of company

(3) Whosoever being an officer or agent of any corporation by any deceitful means or false promise and with intent to defraud, causes or procures any money to be paid or any chattel or marketable security to be delivered to that corporation or to himself or any other person for the use of benefit or on account of that corporation shall be guilty of an offence against this Act.

Penalty: Imprisonment for seven years or thirty thousand ringgit or both.

Evidence of financial position of company

(4) Upon the trial of a charge for any offence against this section the opinion of any properly qualified auditor or accountant as to the financial position of any company at any time or during any period in respect of which he has made an audit or examination of the affairs of the company according to recognized audit practice shall be admissible either for the prosecution or for the defence as evidence of the financial position of the company at that time or during that period notwithstanding that the opinion is based in whole or in part on book-entries, documents or vouchers or on written or verbal statements by other persons.