section 400(1)


400(1) Every one who makes, circulates or publishes a prospectus, a statement or an account, whether written or oral, that he knows 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, is guilty of an indictable offence and liable to imprisonment for a term not exceeding ten years.