Section 436: False statements by officials of companies

Any person who, being a promoter, director, officer, or auditor, of a corporation or
company, either existing or intended to be formed, makes, circulates, or publishes, or
concurs in making, circulating, or publishing, any written statement or account which
in any material particular, is to his knowledge false, with intent thereby to effect any of
the following purposes‐
(a) to deceive or to defraud any member, shareholder, or creditor, of the corporation
or company, whether a particular person or not;
(b) to induce any person, whether a particular person or not, to become a member of,
or to entrust or advance any property to, the corporation or company, or to enter into
any security for the benefit thereof,
is guilty of a felony and is liable to imprisonment for seven years.
The offender cannot be arrested without warrant.