s 61 Reliance on statement and information in respect of misleading or deceptive act
A person is not liable under section 58 in respect of an act that is misleading or deceptive or is likely to mislead or deceive if the person (hereinafter referred to as the “first-mentioned person”) proves that the act consists of a representation made in reliance on— (a) a statement made by a person referred to in subsection 53(1) (hereinafter referred to as the “second-mentioned person”); or (b) a report or valuation of the second-mentioned person, and it is proved by the first-mentioned person that— (aa) the representation accurately reflects the statement made by the second-mentioned person or is contained in the report or valuation of the second-mentioned person, as the case may be; and (bb) after making such enquiries as were reasonable in the circumstances, the first-mentioned person had reasonable grounds to believe, and did believe until the time of the allotment of, issue of, offer for subscription or purchase of, or invitation to subscribe for or purchase, the securities, that the second-mentioned person in making the statement, report or valuation, as the case may be,— (i) was competent to make it; (ii) had given the consent required by subsection 53(1); and (iii) had not withdrawn that consent.