Name and briefly explain four classes of persons who may incur civil liability in respect of a false statement in a prospectus
ANSWER
• Every person who was a promoter of the company at the time of issue.
• Every person who was a director of the company at the time of issue.
• Every person who authorised himself to be named by the prospectus as director and was so named.
• Every person who authorised the issue of the prospectus.
• Every person who had agreed to become a director of the company either immediately or after an interval of time.
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