Question
A public company issues new shares must get ready a prospectus which must be registered with the Securities Commission Malaysia. The board of directors, headed
A public company issues new shares must get ready a prospectus which must be registered with the Securities Commission Malaysia. The board of directors, headed by Godin, approved the prospectus to be issued on a rights issue for 10 million shares. It is later found that the prospectus contains information that is misleading and there is a material omission of information.
Who shall be liable for the misleading information and omission? Justify your answer.
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