46.
| (1) Where a prospectus issued on or after the appointed date includes any untrue statement, any person who authorized the issue of the prospectus shall be guilty of an offence and shall be liable to a fine not exceeding five thousand rupees or to imprisonment of either description for a term not exceeding two years or to both such fine and imprisonment unless he proves either that the statement was immaterial or that he had reasonable ground to believe and did, up to the time of the issue of the prospectus, believe that the statement was true. |
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| (2) A person shall not be deemed for the purposes of this section to have authorized the issue of a prospectus by reason only of his having given the consent required by the provisions of section 41 to the inclusion in such prospectus of a statement purporting to be made by him as an expert. |
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| (3) No prosecution shall be instituted in respect of any offence, under the provisions of subsection (1) except with the sanction of the Attorney-General. |
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Sri Lanka Consolidated Acts