COMPANIES ACT - 1963 (ACT 179)

    Section - 283 - Invitations in Respect of Securities to be dealt in on a Stock Exchange

    (1) Where a prospectus, issued in connection with any general or restricted invitation to the public to acquire any shares or debentures in a public company, states that application has been or will be made for permission for such shares or debentures to be dealt in on a stock exchange, any agreement to acquire such shares or debentures made in pursuance of such prospectus shall become void if the application is refused by that stock exchange or if permission to deal in the shares or debentures is not granted within twenty-eight days after the expiration of the waiting period.

    (2) If any agreement becomes void in accordance with the foregoing subsection, the person or persons making the invitation shall forthwith repay and restore without interest all money and other property received from any person in response to the invitation.

    (3) If any money or other property is not repaid or restored in accordance with subsection (2) of this section within eight days after it becomes repayable or returnable, the person or persons making the invitation and, in the case of a body corporate, the directors of that body corporate shall be jointly and severally liable to repay that money or restore that property with interest at the rate of five per centum per annum on the amount or value thereof from the expiration of the eighth day:

    Provided that a director shall not be liable if he proves that the default in the repayment of the money was not due to any misconduct or negligence on his part.

    (4) So long as the persons making the invitation may become liable to repay any money in accordance with subsection (2) of this section, all moneys received from any persons in response to the invitation shall be kept in a separate bank account and shall be deemed to be held on trust to give effect to the provisions of this section; and if default is made in complying with this subsection, the persons making the invitation and, in the case of a body corporate, every officer thereof who is in default shall be liable to a fine not exceeding five hundred pounds.