Criminal Code (R.S.C., 1985, c. C-46)

Marginal note:False prospectus, etc.

• 400 (1) Every person is guilty of an indictable offence and liable to imprisonment for a term of not more than 10 years or is guilty of an offence punishable on summary conviction who makes, circulates or publishes a prospectus, a statement or an account, whether written or oral, that they know is false in a material particular, with intent

  • (a) to induce persons, whether ascertained or not, to become shareholders or partners in a company,

  • (b) to deceive or defraud the members, shareholders or creditors, whether ascertained or not, of a company, or

  • (c) to induce any person to

    • (i) entrust or advance anything to a company, or

    • (ii) enter into any security for the benefit of a company.

  • (d) [Repealed, 1994, c. 44, s. 26]

• Marginal note:Definition of company

  (2) In this section, company means a syndicate, body corporate or company, whether existing or proposed to be created.