Gujarat BoardEnglish MediumSTD 11 CommerceSPCCProspectus2 Marks
Question
What is Criminal liability regarding prospectus ?
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Answer
To give deliberate misrepresentation in the prospectus and cause financial loss is considered as criminal offence. In this type of liability the officers of the company can be punished with imprisonment or fine or both. The purpose of making misleading statement is to fraudulently tempt to invest or attempt to tempt the person to invest.
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