262False statements by promoters and officers of companies

262 False statements by promoters and officers of companies

Any person being –

(a) a director, officer, or auditor of a company; or

(b) engaged or interested in the formation, flotation, or registration of any body of persons as a company –

who makes, circulates, or publishes, or is privy to making, circulating, or publishing, any written statement or account which is to his knowledge false in any material particular, with intent to deceive or defraud any member or creditor of such company, or to induce any person, whether a particular person or not, to become a member of such company or to apply for any share in such intended company, or to entrust or advance any property to such company, or to any person for any such intended company, or to enter into any security for the benefit of such company or intended company, is guilty of a crime.

Charge:  Fraudulent statement as a promoter [or officer] of a company.