It is important to say that these remedies are available to a misled investor whether he rescinds his contract or not. In other word,’, resection of the contract is not necessary for availing these remedies. These remedies are resorted to when the misled subscriber docs not want to rescind the contract or cannot rescind the contract because the company goes into liquidation.
A misled investor may also make all or any of the following persons [Section 62(1)] liable to pay compensation Orland penalty for miss-statements in the
prospectus:
(a) The directors of the company at the time of issue of the prospectus. (b) Every person who has authorized himself to be named and is named in the prospectus as present or future director.
© Every promoter.
(d) Every other person who has authorized the issue of prospectus. Experts like an engineer, a valuer, an auditor, legal advisory, etc., are
not included under clause (d) above except in respect of their own untrue statements.
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