Unit Trusts Act, 1972
|
Particulars in relation to unit trust schemes for prospective purchasers of units thereunder. |
12.—(1) The manager under a registered unit trust scheme shall prepare or cause to be prepared a document containing such information in relation to the scheme as the manager could reasonably be required to furnish and after approval of the document by the trustee under the scheme, a copy thereof shall be sent to the registrar and to every person who offers to buy units of the scheme and the copy sent to the registrar shall be signed by a director or the secretary of the manager under the scheme and by a director or the secretary of the trustee under the scheme. | |
(2) There shall be included in a document of the kind referred to in subsection (1) of this section information in relation to such matters (if any) as may stand specified for the time being under paragraph (f) of section 10 (2) of this Act and the document shall comply with the provisions (if any) standing specified under that paragraph in relation to the scope and nature of the information. | ||
(3) (a) Subject to the provisions of this subsection, the manager under a unit trust scheme shall be liable to pay compensation to a person who buys units of the scheme on the faith of a document of the kind referred to in subsection (1) of this section for the loss or damage he may have suffered by reason of any untrue statement included therein. | ||
(b) A manager under a unit trust scheme shall not be liable under this subsection if he proves that— | ||
(i) as regards every untrue statement not purporting to be made on the authority of an expert (which expression has the same meaning in this subsection as in section 46 of the Companies Act, 1963 ) or of a public official document or statement, he had reasonable ground to believe, and did up to the time of the purchase of the units concerned believe, that the statement was true; and | ||
(ii) as regards every untrue statement purporting to be a statement by an expert or contained in what purports to be a copy of or extract from a report or valuation of an expert it fairly represented the statement, or was a correct and fair copy of or extract from the report or valuation, and he had reasonable ground to believe and did up to the time of the issue of the document believe that the person making the statement was competent to make it and that person had given his written consent to the issue of the document with the statement included in the form and context in which it is included and had not withdrawn that consent before the purchase aforesaid; and | ||
(iii) as regards every untrue statement purporting to be a statement made by an official person or contained in what purports to be a copy of or extract from a public official document, it was a correct and fair representation of the statement or copy of or extract from the document. | ||
(c) Where— | ||
(i) a statement purporting to be a statement by an expert or contained in what purports to be a copy of or extract from a report or valuation of an expert is contained in a document of the kind referred to in subsection (1) of this section, and | ||
(ii) the document is issued without the consent of the expert or the expert has withdrawn his consent to such issue before it is issued, | ||
the manager under the unit trust scheme concerned shall be liable to indemnify the expert against all damages, costs and expenses to which he may be made liable by reason of the inclusion in the document of a statement purporting to have been made by him as an expert or in defending himself against any action or legal proceeding brought against him in respect thereof. |