IndigoLearn

Forums

All Topics Accountancy Auditing Corporate & Other Laws Direct Taxation Indirect Taxation Financial Management Economics Costing Strategic Management Maths & Stats Exams Others AFM Financial Reporting CFA Level I

Prospectus

Corporate & Other Laws

Sir explain 2nd pont of exception in que 12

B. S. V Subramanyam

CA Inter

★ 50

31-Aug-21 09:29

237

Answers (1)

That means if person authorising issue of prospectus that contains mis-statement actually believed that misstatement was true based on facts, documents and circumstances, he might be exempted from criminal liability if he proves that. Say, company misstated losses as profits in prospectus. In that case, we can't say director had reasonable ground to believe that they company was earning profits as he would have access to company records, financials etc.