19   Acquisition guarantor may be convicted of offence if proceedings against defendant dismissed

(cf 1946 No 13, s 21D (5))

(1)  If an offence is proved under section 16 (1) but the proceedings are dismissed under section 18, the acquisition guarantor is liable to the same penalty as could have been imposed if the offence to which the proceedings relate had been committed by the guarantor.

(2)  Subsection (1) does not apply if the acquisition guarantor proves that, when the acquisition guarantee was given, the guarantor had reasonable grounds for believing that the statements and descriptions contained in the acquisition guarantee were true.

(3)  Nothing in this section affects the liability of an acquisition guarantor to be prosecuted for an offence against section 20.