PART IV - ISSUES OF SECURITIES AND TAKE-OVERS AND MERGERS DIVISION 1 - PROPOSALS IN RELATION TO SECURITIES
Section 32B. False or misleading statements, etc.
(1) Where any statement or information is required to be submitted to the Commission under this Division in relation to or in connection with any proposal submitted pursuant to section 32 -
(a) an applicant, any of its officers or associates;
(b) a financial adviser or an expert; or
(c) any other person,
shall not -
(aa) submit or cause to be submitted any statement or information that is false or misleading;
(bb) submit or cause to be submitted any statement or information from which there is a material omission; or
(cc) engage in or aid or abet conduct that he knows to be misleading or deceptive or is likely to mislead or deceive the Commission.
(2) It shall be a defence to a prosecution or any proceeding for a contravention of subsection (1) if it is proved that the defendant, after making enquires as were reasonable in the circumstances, had reasonable grounds to believe, and did until the time of the making of the statement or provision of the information or engaging in the conduct, was of the belief that-
(a) the statement or information was true and not misleading;
(b) the omission was not material;
(c) there was no material omission; or
(d) the conduct in question was not misleading or deceptive.
(3) Where -
(a) a statement or information referred to in subsection (1) has been submitted or provided to the Commission, or a conduct referred to in subsection (1) has been engaged in; and
(b) a person referred to in that subsection becomes aware before the proposal has been fully implemented or carried out -
(i) that the statement or information may be false or misleading or materially incomplete; or
(ii) that the conduct may tend to mislead or deceive,
the person shall forthwith advise the Commission of the facts referred to in subparagraph (b)(i) or (b)(ii), where applicable, and shall take such action as the Commission may require pursuant to subsection 32(7).
(4) A person who contravenes subsection (1) or subsection (3) shall be guilty of an offence and shall on conviction be punished with a fine not exceeding three million ringgit or imprisonment for a term not exceeding ten years or both.