Stock exchange permission requirement: allotments void and funds refundable if permission not obtained, with director liability. Companies must apply to recognised stock exchanges before issuing a prospectus offering shares or debentures and disclose the exchange(s) in the prospectus. Allotments under such a prospectus are void if permission is not granted within the prescribed period, subject to a pending appeal. Application moneys must be kept in a separate Scheduled Bank account until permission or appeal disposal and repaid without interest if permission is not obtained; failure to repay within eight days creates joint and several liability of the company and directors with prescribed interest and attracts fines and possible imprisonment for prolonged default.
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Provisions expressly mentioned in the judgment/order text.
Stock exchange permission requirement: allotments void and funds refundable if permission not obtained, with director liability.
Companies must apply to recognised stock exchanges before issuing a prospectus offering shares or debentures and disclose the exchange(s) in the prospectus. Allotments under such a prospectus are void if permission is not granted within the prescribed period, subject to a pending appeal. Application moneys must be kept in a separate Scheduled Bank account until permission or appeal disposal and repaid without interest if permission is not obtained; failure to repay within eight days creates joint and several liability of the company and directors with prescribed interest and attracts fines and possible imprisonment for prolonged default.
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