Every prospectus issued by or on behalf of a company, or by or on behalf of any person who is or has been engaged or interested in the formation of the company, must comply—
with Part I of Schedule 3 to this Act, as respects the matters to be stated in the prospectus, and
with Part II of that Schedule, as respects the reports to be set out.
It is unlawful to issue any form of application for shares in or debentures of a company unless the form is issued with a prospectus which complies with the requirements of this section.
Subsection (2) does not apply if it is shown that the form of application was issued either—
in connection with a bona fide invitation to a person to enter into an underwriting agreement with respect to the shares or debentures, or
in relation to shares or debentures which were not offered to the public.
If a person acts in contravention of subsection (2), he is liable to a fine.
This section does not apply—
to the issue to existing members or debenture holders of a company of a prospectus or form of application relating to shares in or debentures of the company, whether an applicant for shares or debentures will or will not have the right to renounce in favour of other persons, or
to the issue of a prospectus or form of application relating to shares or debentures which are or are to be in all respects uniform with shares or debentures previously issued and for the time being listed on a prescribed stock exchange;
but subject to this, it applies to a prospectus or a form of application whether issued on or with reference to the formation of a company or subsequently.