Section 16
False representations etc.
ActIn forceProvision 16 of 18
Section 16
(1)
If, for the purpose of obtaining the approval of the members or creditors of a company to a proposal for a voluntary arrangement, a person who is an officer of the company —
(a)
makes any false representation; or
(b)
fraudulently does, or omits to do, anything, he is guilty of an offence and liable on conviction to a fine not exceeding
$10,000, imprisonment for a term not exceeding 2 years or both.
(2)
Subsection (1) applies even if the proposal is not approved.