PART IV - ISSUES OF SECURITIES AND TAKE-OVERS AND MERGERS DIVISION 3 - PROSPECTUS
Section 54. Order to stop issue securities.
(1) Where in the opinion of the Commission-
(a) a prospectus does not comply with or is not prepared in accordance with any requirement or provision of this Act;
(b) a prospectus contains a statement or information that is false or misleading;
(c) a prospectus contains a statement or information from which there is a material omission; or
(d) an issuer has contravened any provision of the securities laws or the Companies Act 1965,
the Commission may, by order in writing served on the issuer or such other person as the Commission may determine, direct the issuer or such other person not to allot, issue, offer, make an invitation to subscribe for or purchase or sell, further securities to which the prospectus relates, as the case requires.
(2) Subject to subsections (3) and (5) , the Commission shall not make an order under subsection (1) unless the Commission has given a reasonable opportunity to be heard to any affected person as to whether such an order should be made.
(3) If the Commission considers that any delay in making an order under subsection (1) by giving an opportunity to be heard would be prejudicial to the public interest, the Commission may make an interim order without giving the opportunity to be heard.
(4) An interim order made under subsection (3) shall have effect until the Commission makes an order under subsection (1) or until the interim order is revoked, whichever first occurs.
(5) Subject to subsection (4) , an interim order, unless sooner revoked, shall have effect until the end of twenty-one days after the day on which it is made.
(6) While an order made under subsection (1) or an interim order made under subsection (3) is in force, this Division shall apply as if the prospectus had not been registered.
(7) An order made under subsection (1) or an interim order made under subsection (3) may, by further order in writing made by the Commission, be revoked if the Commission becomes satisfied that the circumstances that resulted in the making of the order no longer exists.
(8) A person who contravenes an order made under subsection (1) or an interim order made under subsection (3) shall be guilty of an offence.