R v Rada Corporation Ltd - [1990] 3 NZLR 438

Criminal law — Offences — Misstatement in company prospectus — Registered prospectus of public company stated that subsidiary was to subscribe for shares valued at $50 million but omitted to state that subsidiary did not hold cash of $50 million and had not made firm arrangements to obtain that cash — Subsidiary had means of obtaining that cash — Directors were charged with signing an untrue prospectus and sought discharge under s 347 of the Crimes Act 1961 — Whether there was sufficient evidence that omissions were misleading and statement in prospectus was untrue — Whether offence was one of absolute liability — Whether belief of directors in truth of statement in prospectus went only to mitigation of penalty — Whether directors should be discharged — Securities Act 1978, ss 55 and 58.