§158 False or Fraudulent Statements Prohibited; Penalties

Summary

People who are stockholders, directors, officers, employees, or agents of a China Trade Act corporation must not say, write, or advertise anything about the value of the corporation's stocks, bonds, or other debt papers, or about its financial condition or transactions, if they know or have reason to think an important part of the statement is false. If the corporation’s authorized capital stock is not fully paid in, those people must not state the authorized capital amount without also giving the amount actually paid in, and the paid-in amount they give cannot be greater than the real paid-in amount. Anyone convicted of breaking these rules can be fined up to $5,000, jailed for up to ten years, or both.