Can anyone elaborate on this question? Prospectus and allotment of securities - Section no. 35(civil liability)

Firdaus · 5 Oct 2024

Well you're right partially as I searched on this and found, Damage can be claimed only if the person has suffered any loss due to such misstatement in the prospectus, and in the given question he hasn't suffered any loss or damage. And exceptions applicable in case of expert's statements. Thanks though!!

Sujal · 5 Oct 2024

He purchased shares on basis of expert report, hence, sec-35 applicable, & any damages or compensation can be claimed from such expert & director as well if he also defrauded, Therefore, company is not liable, but such expert &/or director are liable for compensation !!!