PART IV - SHARES, DEBENTURES AND CHARGES DIVISION 1 - PROSPECTUSES
Section 40. Certain advertisements deemed to be prospectuses.
(1) Every advertisement offering or calling attention to an offer or intended offer of shares in or debentures of a corporation or proposed corporation to the public for subscription or purchase shall be deemed to be a prospectus (and all written laws and rules of law as to the contents of prospectuses and as to liability in respect of statements in and omissions from prospectuses or otherwise relating to prospectuses shall apply and have effect accordingly) if it contains any information or matter other than the following:
(a) the number and description of the shares or debentures concerned;
(b) the name and date of registration of the corporation and its paid up share capital;
(c) a concise statement of the general nature of the main business or proposed main business of the corporation;
(d) the names, addresses and occupations of -
(i) the directors or proposed directors;
(ii) the brokers or underwriters to the issue; and
(iii) in the case of debentures, the trustee for the debenture holders;
(e) the name of the Stock Exchange of which the brokers or underwriters to the issue are members; and
(f) particulars of the opening and closing dates of the offer and the time and place at which copies of the full prospectus and forms of application for the shares or debentures may be obtained,
and unless it states that applications for shares or debentures will proceed only on one of the forms of application referred to in and attached to a printed copy of the prospectus.
(2) No statement that, or to the effect that, the advertisement is not a prospectus shall affect the operation of this section.
(3) This section shall apply to advertisements published or disseminated in Malaysia by newspaper, broadcasting, television, cinematograph or any other means whatsoever.
(4) Where an advertisement that is deemed to be a prospectus by virtue of subsection (1) does not comply with the requirements of this Act as to prospectuses, the person who published or disseminated the advertisement, and every officer of the corporation concerned, or other person, who knowingly authorized or permitted the publication or dissemination, shall be guilty of an offence against this Act.
Penalty: Imprisonment for five years or one hundred thousand ringgit or both.
(a) an advertisement offering or calling attention to an offer or intended offer of shares in or debentures of a corporation or proposed corporation to the public for subscription or purchase is published or disseminated;
(b) the person who published or disseminated the advertisement before so doing, obtained a certificate signed by at least two directors of the corporation, or two proposed directors of the proposed corporation, that the proposed advertisement is an advertisement that will not be deemed to be a prospectus by virtue of subsection (1); and
(c) the advertisement is not patently an advertisement that is deemed to be a prospectus by virtue of that subsection,
the corporation and each person who signed the certificate shall be deemed to be the persons who published or disseminated the advertisement, but no other person shall be deemed to be such a person.
(6) Any person who has obtained a certificate referred to in subsection (5) (b) shall, when so requested by the Registrar forthwith deliver the certificate to the Registrar.
Penalty: Imprisonment for three years or ten thousand ringgit. Default penalty.
(7) Nothing in this section shall limit or diminish any liability which any person may incur under any rule of law or under any provision of this Act apart from this section.