Prospectus and Allotment of Securities

Corporate & Other Laws

Anyone kindly explain point (iv) - Circumstances when an expert is not liable for a misstatement in the prospectus.

Rajasekaran Suresh

CA Inter

★ 495

26-Feb-23 11:51

480

Answers (2)

A person who makes any statement on the basis of report of an expert shall not be liable, if it is proved that- (a) statement made by such person is correct (b) the person who made the statement, on the basis of the statement made by the expert, should believe that expert was competent to make it (c) expert given his consent and not withdrawn his consent, before filing of a copy of the prospectus with registrar.

Karthick A

CA Final

★ 1K+

26-Feb-23 13:17

(Shortly) (b) the person who made the statement should believe that the expert is competent to make it

Karthick A

CA Final

★ 1K+

26-Feb-23 13:21