(1) Where any untrue statement has been included in the draft terms of merger, the explanatory report or the accounting statement, each of the directors and any person who authorised the issue of those documents shall be guilty of an offence.
(2) Where any untrue statement has been included in the independent person's report the independent person and any person who authorised the issue of the report shall be guilty of an offence.
(3) It shall be a defence for a person charged with an offence under paragraph (1) or (2) to show that, having exercised all reasonable care and skill, he had reasonable grounds for believing and did, up to the time of the issue of the documents, believe that the statement was true.