5. Registration of company which proposes to promote pyramid selling scheme or arrangement prohibited
Feedback & supportNo company which proposes to promote a multi-level marketing scheme or arrangement or a pyramid selling scheme or arrangement is to be incorporated or registered under the Companies Act 1967.
company
“company” means a company as defined in the Companies Act 1967 and includes a corporation as defined in that Act;
Where a company which is designed to promote a multi-level marketing scheme or arrangement or a pyramid selling scheme or arrangement contravenes subsection (1) by obtaining incorporation or registration under the Companies Act 1967, that company and every officer of that company shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $200,000 or to imprisonment for a term not exceeding 5 years or to both.
promote
“promote” includes to manage, form, operate, carry on, engage in or otherwise to organise;