1984 Ed.]
Companies
[CAP. 32
47
(6) If a prospectus is issued without a copy thereof having been registered under this section by the Registrar or without the copy delivered to the Registrar for registration having endorsed thereon or attached thereto the required documents, the company, and every person who is knowingly a party to the issue of the prospectus, shall be liable to a fine of $200 for every day from the date of the issue of the prospectus until a copy thereof is so registered with the required documents endorsed thereon or attached thereto. (Amended, 6 of 1984, s. 259)
(7) Any person aggrieved by the refusal of the Registrar to register a prospectus may appeal to the court and the court may either dismiss the appeal or order the Registrar to register the prospectus.
39. [Repealed, 6 of 1984, s. 23]
(Added, 78 of 1972, s. 6)
40. (1) Subject to the provisions of this section, where a prospectus invites persons to subscribe for shares in or debentures of a company, the following persons shall be liable to pay compensation to all persons who subscribe for any shares or debentures on the faith of the prospectus for the loss or damage they may have sustained by reason of any untrue statement included therein, that is to say-
(a) every person who is a director of the company at the time of the issue of the prospectus;
(b) every person who has authorized himself to be named and is named in the prospectus as a director or as having agreed to become a director either immediately or after an interval of time;
(c) every person being a promoter of the company; and
(d) every person who has authorized the issue of the prospectus:
Provided that where under section 38C the consent of a person is required to the issue of a prospectus and he has given that consent, he shall not by reason of his having given it be liable under this subsection as a person who has authorized the issue of the prospectus except in respect of an untrue statement purporting to be made by him as an expert.
(2) No person shall be liable under subsection (1) if he proves-
(a) that, having consented to become a director of the company, he withdrew his consent before the issue of the prospectus, and that it was issued without his authority or consent; or
Civil liability for misstatements in prospectus. 1948 c. 38, s. 43.
Page 305
Page 306
1984 Ed.]
Companies
[CAP. 32
47
(6) If a prospectus is issued without a copy thereof having been registered under this section by the Registrar or without the copy delivered to the Registrar for registration having endorsed thereon or attached thereto the required documents, the company, and every person who is knowingly a party to the issue of the prospectus, shall be liable to a fine of $200 for every day from the date of the issue of the prospectus until a copy thereof is so registered with the required documents endorsed thereon or attached thereto. (Amended, 6 of 1984, s. 259)
(7) Any person aggrieved by the refusal of the Registrar to register a prospectus may appeal to the court and the court may either dismiss the appeal or order the Registrar to register the prospectus.
39. [Repealed, 6 of 1984, s. 23]
(Added, 78 of 1972, s. 6)
40. (1) Subject to the provisions of this section, where a prospectus invites persons to subscribe for shares in or debentures of a company, the following persons shall be liable to pay com- pensation to all persons who subscribe for any shares or debentures on the faith of the prospectus for the loss or damage they may have sustained by reason of any untrue statement included therein, that is to say-
(a) every person who is a director of the company at the time
of the issue of the prospectus;
(b) every person who has authorized himself to be named and is named in the prospectus as a director or as having agreed to become a director either immediately or after an interval of time;
(c) every person being a promoter of the company; and
(d) every person who has authorized the issue of the prospectus:
Provided that where under section 38C the consent of a person is required to the issue of a prospectus and he has given that consent, he shall not by reason of his having given it be liable under this subsection as a person who has authorized the issue of the pro- spectus except in respect of an untrue statement purporting to be made by him as an expert.
(2) No person shall be liable under subsection (1) if he proves-
(a) that, having consented to become a director of the company, he withdrew his consent before the issue of the prospectus, and that it was issued without his authority or consent; or
Civil liability for misstatements in prospectus. 1948 c. 38, s. 43.
Page 305Page 306
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