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Companies Act, 1973 (Act No. 61 of 1973)

Chapter VI: Offering of Shares and Prospectus

Allotment and Acceptance after Offer to the Public

167. Voidable allotment where section 164, 165 or 166 contravened

 

 

1)
a) An allotment made by a company to an applicant, or the acceptance of an offer made by an applicant, in contravention of any provision of section 164 , 165 or 166 shall be voidable at the instance of the applicant concerned within thirty days after the date of allotment or acceptance, and not later.
b) The provisions of paragraph (a) shall apply notwithstanding that the company concerned may be in the course of being wound up.

 

2)
a) When an allotment or an acceptance is declared void under subsection (1), every director and every officer of the company concerned or the offeror, and if the offeror is a company, every director and every officer thereof, shall be liable to compensate the company concerned and the applicant for any loss, damages or costs which such company or the applicant may have sustained or incurred thereby.
b) No proceedings to recover any such loss, damages or costs shall be commenced after the expiration of two years from the date of the relevant allotment or acceptance.