Companies Act (Cap. 386), article 94

94. (1) The persons who are responsible for or who have authorised the issue of a prospectus shall be jointly and sever ally liable for any damage sustained by a person subscribing for sha res or debentures on the faith of that prospectus, by reason of any untrue statement included therein. (2) No person shall be liable under this article if - (a) he proves that he had reasonable grounds to believe and did, up to the time of the allotment of the shares or debentures believe, that the statement was true; or (b) he proves, as regards an untrue statement made by an expert, that he had reasonable grounds to believe and did, up to the time of the allotment of the shares or 60 CAP. 386.] COMP ANIES debentures believe, that the person making the statement was compet ent to make it; or (c) on becoming aware of the untrue statement before any allotment is made under the prospectus, he gave reasonable public notice of the untruthfulness of the statement. (3) No person shall be liable for statements made in the summary referred to in Part A of the Se cond Schedule, including the tra nslation thereof, except when such statem ents are misleading, inaccurate or inconsistent, when read together with the other parts of the pr ospectus, or if it does not provide, when r ead together with the other pa rts of the prospectus, key information in o rder to aid investors when cons idering whether to invest in such secur ities. The summary shall contain a clear warning to that effect. Document containing offer of shares or debentures for sale to be deemed prospectus. Amended by: IV . 2003.53.