Singapore legislation
Clause 309
Clause 309
Securities hawking prohibited
(1)
No person shall make an offer to any person of securities for subscription or purchase, or an invitation to any person to subscribe for or purchase securities, in the course of, or arising from, an unsolicited meeting with that other person.
(2)
Subsection (1) shall not apply to any person who makes an offer or invitation in respect of securities that does not need a prospectus by virtue of section 274, 275, 304 or 305.
(3)
The Authority may, by order published in the Gazette, exempt —
any person or class of persons; or
any class or description of securities,from compliance with subsection (1), subject to such conditions as may be specified in the order.
(4)
Every person who acts, incites, causes or procures any person to act in contravention of subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 or to imprisonment for a term not exceeding 6 months or to both and, in the case of a second or subsequent offence, to a fine not exceeding $20,000 or to imprisonment for a term not exceeding 12 months or to both.
(5)
Where any person is convicted of having made an offer or invitation in contravention of subsection (1), the court before which he is convicted may order that any contract made as a result of the offer or invitation shall be void and may give such consequential directions as it thinks proper for the repayment of any money or the retransfer of any securities.
(6)
An appeal against any order made under subsection (5) and any consequential directions shall lie to the High Court.
(7)
In this section —
“securities” means the securities of a corporation, whether the corporation is in existence or to be formed; and
a reference to an offer or invitation in respect of securities for subscription or purchase shall be construed as including an offer or invitation in respect of securities by way of barter or exchange.