V-1 - Securities Act

Section 52 Disposition versions

1977-12-31

52. The following are fraudulent acts within the meaning of this act:

(a)  any false representation made intentionally, in writing, orally, by conduct or in any other manner, of a material fact, past or present, and any intentional omission to disclose such fact;

(b)  any affirmation or promise respecting the future, which is beyond reasonable expectation and is not made in good faith;

(c)  any fictitious or pretended trade in securities;

(d)  obtaining or attempting to obtain, directly or indirectly, through trading in securities, any commission, fees or gross profit incompatible with the practice of the trade or with business methods generally recognized as equitable, or with the sound development of trade, industry, natural resources or any other branch of the economic field;

(e)  subject to the last paragraph of this section, any promise or representation, written or oral, made by a broker, security issuer or salesman with a view to inducing a person to acquire a security by representing to him that it will be repurchased or resold by such broker, security issuer or salesman, or by another person or company, or that the whole or part of the price of sale of such security will be reimbursed to the purchaser in any manner;

(f)  any promise or representation, written or oral, made by a broker, security issuer or salesman with a view to inducing a person to acquire a security by representing to him, without reasonable excuse, that it will be quoted on a stock exchange;

(g)  upon the occasion of a dangerously hazardous speculative transaction respecting securities, to abuse the credulity, ignorance, weakness or manifest inexperience in business of a person incapable of estimating the risk involved in the transaction, and so to cause him serious prejudice;

(h)  any deliberate false declaration relating to a material fact, contained in any registration application, document, statement or information submitted or given to the Commission, its representatives or the Director under the provisions of this act or of the regulations, or in a prospectus or other publication relating to securities and intended for the information of the public;

(i)  generally any artifice, bargain, stratagem, prospectus, circular, publication, advertisement, business method or act employed to obtain money, profit or property by any of the above mentioned means or by any other unlawful means;

(j)  any other act or omission relating to trading in securities and described as a fraudulent act by the regulations.

The provisions of subparagraph e of this section shall not apply to a statement made by a broker, security issuer or salesman that the security sold or offered for sale is redeemable or reimbursable by the company which issued it, if such statement is true.

R. S. 1964, c. 274, s. 35; 1971, c. 77, s. 15.