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The Companies Act, 1956

Prospectus and Allotment and Other Matters Relating to Issue of Shares or Debentures (55 to 81)

Section 59 Penalty and interpretation

Section 59 Penalty and interpretation

(1)  If any prospectus is issued in contravention of section 57 or 58, the company, and every person, who is knowingly a party to the issue thereof, shall be punishable with fine which may extend to fifty thousand rupees.

(2)  In sections 57 and 58, the expression “expert” includes an engineer, a valuer, an accountant and any other person whose profession gives authority to a statement made by him.