2116
(s. 83 contd.)
No. 58 of 1911.
37
money sion
COMPANIES.
included the consideration for the lease, and the expres-sub-purchaser included a sub-lessee.
(4) Any condition requiring or binding any applicant for shares or debentures to waive compliance with any requirement of this section, or purporting to affect him with notice of any contract, document, or matter not specifically referred to in the prospectus, shall be void.
(5) Where any such prospectus as is mentioned in this section is published as a newspaper advertisement, it shall not be necessary in the advertisement to specify the contents of the memorandum or the signatories thereto, and the number of shares subscribed for by them.
(6) In the event of non-compliance with any of the requirements of this section, a director or other person responsible for the prospectus shall not incur any liability by reason of the non-compliance, if he proves that—
(a) as regards any matter not disclosed, he was not cognisant thereof; or
(b) the non-compliance arose from an honest mistake of fact on his part.
Provided that in the event of non-compliance with the requirements contained in paragraph (m) of sub-section (1) no director or other person shall incur any liability in respect of such non-compliance unless it be proved that he had knowledge of the matters not disclosed.
(7) This section shall not apply to a circular or notice inviting members or debenture holders of a company to subscribe either for shares or for debentures of the company, whether with or without the right to renounce in favour of other persons, but subject as aforesaid, this section shall apply to any prospectus whether issued on or with reference to the formation of a company or subsequently.
(8) The requirements of this section as to the memorandum and the qualification, remuneration, and interest of directors, the names, descriptions, and addresses of directors or proposed directors, and the amount or estimated amount of preliminary expenses, shall not apply in the case of a prospectus issued more than one year after the date at which the company is entitled to commence business.
2116
(s. 83 contd.]
No. 58 of 1911.
37
money sion
COMPANIES.
included the consideration for the lease, and the expres- sub-purchaser included a sub-lessee.
(4) Any condition requiring or binding any applicant for shares or debentures to waive compliance with any requirement of this section, or purporting to affect him with notice of any contract, document, or matter not specifically referred to in the prospectus, shall be void.
(5) Where any such prospectus as is mentioned in this section is published as a newspaper advertisement, it shall not be necessary in the advertisement to specify the contents of the memorandum or the signatories thereto, and the number of shares subscribed for by them.
(6) In the event of non-compliance with any of the requirements of this section, a director or other person responsible for the pro- spectus shall not incur any liability by reason of the non-compliance, if he proves that—
(a) as regards any matter not disclosed, he was not cognisant thereof; or
(b) the non-compliance arose from an honest mistake of fact on his part.
Provided that in the event of non-compliance with the require- ments contained in paragraph (m) of sub-section (1) no director or other person shall incur any liability in respect of such non- compliance unless it be proved that he had knowledge of the matters not disclosed.
(7) This section shall not apply to a circular or notice inviting members or debenture holders of a company to subscribe either for shares or for debentures of the company, whether with or without the right to renounce in favour of other persons, but subject as aforesaid, this section shall apply to any prospectus whether issued on or with reference to the formation of a company or subsequently.
(8) The requirements of this section as to the memorandum and the qualification, remuneration, and interest of directors, the names, descriptions, and addresses of directors or proposed direc- tors, and the amount or estimated amount of preliminary expenses, shall not apply in the case of a prospectus issued more than one year after the date at which the company is entitled to commence business.
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