Investors’ rights 4 Mutual Funds

(1) If a registered public fund publishes a prospectus or any amendment thereto that contains any misrepresentation relating to any of the disclosures required under section 14 (2)(a) of this Act, any person who purchases any shares pursuant to such prospectus or amendment thereto is deemed to have relied upon any such misrepresentation and shall have the rights provided in subsection (2) of this section. (2) A person referred to in subsection (1) of this section may elect to exercise a right of action, (a) for the rescission of the purchase; or (b) for damages, jointly and severally against the fund, and every member of the board of directors (by whatever name called) who, while aware of the misrepresentation, authorized the signing of or approved the prospectus or amendment thereto and consented to its publication and filing or caused it to be signed and filed. (3) For the purposes of this section, “misrepresentation” means, 24 (a) an untrue or misleading statement of any of the disclosures required under section 14 (2) (a) of this Act; or (b) an omission to disclose any such disclosures. (4) No person is liable under this section if he proves that the purchaser purchased the shares offered by the prospectus or amendment thereto with knowledge of the misrepresentation. (5) The right of action for rescission or for damages conferred by subsection (2) of this section is in addition to and without derogation from any other right the plaintiff may have at law.