s 31
(1) An invitation to the public to deposit money with Invitations or lend money to an offshore company or a foreign offshore to public to company shall not be issued, circulated or distributed by the to or deposit company or by any other person unless— (a) a prospectus in relation to the invitation has been company or a foreign registered by the Registrar; company. (b) the prospectus contains an undertaking by the company that it will, within two months after the acceptance of any money as a deposit or loan from any person in response to the invitation, issue to that person a document which acknowledges, evidences or constitutes an acknowledgement of the indebtedness of the company in respect of that deposit or loan; and [Pt. IV, S. 31] (c) the document is described or referred to in the prospectus and in any other document, whether constituting or relating to the invitation, as— (i) an unsecured note or an unsecured deposit note; (ii) a mortgage debenture or certificate of mortgage debenture stock; or (iii) a debenture or certificate of debenture stock, in accordance with this section. (2) For the purposes of this Division, any offshore company or foreign offshore company which accepts or agrees to accept from any person any money on deposit or loan shall be deemed to make an invitation to the public to deposit money with or lend money to the company or proposed company. (3) Notwithstanding subsection (2), an offshore company or a foreign offshore company is not required to issue a prospectus if it is not, at any one time, under a liability (whether or not such liability is present or future) to repay any money accepted by it on deposit or loan from more than twenty persons. (4) Where, pursuant to an invitation referred to in subsection (1), an offshore company or a foreign offshore company has accepted from any person any money as a deposit or loan, the company shall, within two months after the acceptance of the money, issue to that person a document which— (a) acknowledges, evidences or constitutes an acknowledgement of the indebtedness of the company in respect of that deposit or loan ; and (b) complies with the description contained in the prospectus and with the regulations and contains on its face a statement that it is a document of that description. (5) Nothing in this section shall apply to a prescribed company and nothing in this Act shall require a prospectus to be issued in connection with any invitation to the public to deposit money with a prescribed company. : : [Pt. IV, S. 31-33] (6) The Minister may, by notice published in the Gazette, Subs- AA 817 declare an offshore company or a foreign ottshore company or a trust company to be a prescribeg company for the purposes of this section. (7) Any person who contravenes or fails to comply with any of the provisions of this section and any officer of an offshore company or a foreign offshore company who is in default, shall be guilty of an offence against this Act. ringgit or both. (8) For the purposes of this section, a document issued by a borrowing company certifying that a person named therein in respect of any deposit with or loan to the company is the registered holder of a specified number or value— (a) of unsecured notes or unsecured deposit notes; (b) of mortgage debentures or certificates of mortgage debenture stock; or (c) of debentures or certificates of debenture stock, issued by the company upon or subject to the terms and conditions contained in a trust deed referred to or identified in the certificate, shall be deemed to be a document evidencing the indebtedness of that company in respect of that deposit or Ioan.