COMPANIES ACT - 1963 (ACT 179)

    Section - 320 - Inducing Persons to Invest

    (1) Any person who by any statement, promise or forecast which is untrue, misleading, false or deceptive induces or attempts to induce another person to enter into or offers to enter into,

    (a) any agreement for or with a view to acquiring, disposing of, or underwriting, securities, or lending or depositing money to or with any body corporate, 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 securities or by reference to fluctuations in the value of securities,

    shall be guilty of an offence and liable to a term of imprisonment not exceeding seven years unless he shall prove that he had reasonable grounds to believe and did believe that the statement was true or that the promise or forecast was not misleading, false or deceptive.

    (2) Any person who, by any dishonest concealment of material facts induces or attempts to induce another person to enter into any of the transactions referred to in subsection (1) of this section shall be guilty of a like offence and subject to the like punishment as that prescribed by subsection (1) of this section.