No. 58 of 1911.
2047
(2) For the purposes of this section, every person shall be [s. 83 contd.] deemed to be a vendor who has entered into any contract, absolute or conditional, for the sale or purchase, or for any option of purchase, of any property to be acquired by the company, in any case where
(a) the purchase money is not fully paid at the date of issue of the prospectus; or
(b) the purchase money is to be paid or satisfied wholly or in part out of the proceeds of the issue offered for subscription by the prospectus; or
(c) the contract depends for its validity or fulfilment on the result of such issue.
(3) Where any of the property to be acquired by the company is to be taken on lease, this section shall apply as if the expression "vendor" included the lessor, and the expression "purchase money" included the consideration for the lease, and the expression "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 cognizant 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 is proved that he had knowledge of the matters not disclosed.
COMPANIES.
No. 58 of 1911.
2047
(2) For the purposes of this section, every person shall be [s. 83 contd.] deemed to be a vendor who has entered into any contract, absolute or conditional, for the sale or purchase, or for any option of purchase, of any property to be acquired by the company, in any case where
(a) the purchase money is not fully paid at the date of issue of the prospectus; or
(b) the purchase money is to be paid or satisfied wholly or in part out of the proceeds of the issue offered for subscrip- tion by the prospectus; or
(c) the contract depends for its validity or fulfilment on the result of such issue.
(3) Where any of the property to be acquired by the company is to be taken on lease, this section shall apply as if the expression "vendor" included the lessor, and the expression "purchase money" included the consideration for the lease, and the expression "sub-purchaser" included a sub-lessee.
(4) Any condition requiring or binding any applicant for shares or debentures to waive compliance with any require- ment 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 num- ber of shares subscribed for by them.
(6) In the event of non-compliance with any of the require- ments 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 cogni- zant 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 is proved that he had knowledge of the matters not disclosed.
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