Registration of prospectus
Section 42 of the Act states the following:
(1) A prospectus shall not be issued, circulated or distributed by any person unless a copy thereof has first been registered by the Registrar.
(2) The Registrar shall not register a copy of any prospectus if it contains any statement or matter which is in his opinion misleading in the form and context in which it is included and unless –
(a) the copy signed by every director and by every person who is named therein as a proposed director of the corporation or by his agent authorized in writing is lodged with the Registrar on or before the date of its issue;
(b) the prospectus appears to comply with the requirements of this Act; and (c) there are also lodged with the Registrar copies verified as prescribed of any consents required by section 45 to the issue of the prospectus.
(3) If a prospectus is issued without a copy thereof having been so registered the corporation and every person who is knowingly a party to the issue of the prospectus shall be guilty of an offence against this Act.
The penalty for an offence against this Act is imprisonment for five years or a fine of one hundred thousand ringgit or both.