The Tax Publishers10. Non-incurrence of liability by directors, etc.

A director or other person responsible for prospectus shall not incur any liability by reason of non-compliance with or contravention of provisions relating to issue and contents of prospectus or form of application and supply of prospectus on request in following cases [Section 56(4)] --

(a) If he proves that he had no knowledge of any matter not disclosed in the prospectus or form of application.

(b) If he proves that the non-compliance or contravention arose from an honest mistake of fact on his part.

(c) He shows that the form of application was issued either, in connection with a bona fide invitation to a person to enter into an underwriting agreement with respect to the shares or debentures; or in relation to shares or debentures which were not offered to the public.

(d) The non-compliance or contravention was in respect of matters which were either immaterial or ought to be, in the opinion of the concerned Court, reasonably to be excused.

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