Which of the following establishes a defence to civil liability for misstatement in a prospectus under…
Withdrawal of consent to become a director before issue, followed by issue without that person’s authority or consent, establishes the defence under section 35(2)(a) of the…
Choose your answer
Which of the following establishes a defence to civil liability for misstatement in a prospectus under section 35(2) of the Companies Act, 2013?
Answer and explanation
Correct answer A
Withdrawal of consent to become a director before issue, followed by issue without that person’s authority or consent, establishes the defence under section 35(2)(a) of the Companies Act, 2013. Unauthorised issue alone does not establish that defence. Issue without knowledge or consent requires the further step of giving reasonable public notice forthwith on becoming aware of the issue under section 35(2)(b).
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