Derek McDowell (Labour)

The purpose of these sections is to put an onus on individuals drawing up a prospectus to ensure that its contents are correct, but we seem to be going out of our way to make this onus a light one, as this amendment allows people to evade responsibility if they did not know that something was wrong. We do not put them under any obligation to determine, or at least make reasonable inquiry, as to whether something was wrong.

Section 42 states that it shall be a defence to say the contravention arose from an honest mistake of fact on the part of an individual, and that with regard to any matter not disclosed in the prospectus concerned that he or she did not know it. We are facilitating people to wash their hands of any responsibility and liability. If people are responsible for drawing up a prospectus they should have some responsibility for what is in it. They should not be allowed to walk away simply on the basis that they were not aware of what was in it in the first place.