Section 87: Criminal liability in respect of statements in lieu of prospectus

(1) Where a statement in lieu of prospectus includes any untrue statement or mis-statement, any person who authorised the delivery of the statement in lieu of prospectus for registration commits an offence and is liable:
(a) on conviction to a fine of not less than N1,000,000,000 or to imprisonment for a term not exceeding three years or to both such fine and imprisonment; or
(b) on summary conviction, to a fine not exceeding N1,000,000,000 or to imprisonment for a term not exceeding three months or to both such fine and imprisonment, unless he proves either that the untrue statement or mis-statement was immaterial or that he had reasonable ground to believe and did, up to the time of the delivery for registration of the statement in lieu of prospectus, believe that the untrue statement or mis-statement was true.
(2) For the purposes of this section:
(a) any information included in a statement in lieu of prospectus shall be deemed to be untrue if it is misleading in the form or context in which it is included; and
(b) an information shall be deemed to be included in a statement in lieu of prospectus if it is contained in the prospectus or in any report or memorandum appearing on the face of it or by reference incorporated in it.