Companies Act, 1956
Section - 71 - Effect of irregular allotment
Effect of irregular allotment.71. (1) An allotment made by a company to an applicant in contravention of the provisions of section or shall be voidable at the instance of the applicant— (a) within two months after the holding of the statutory meeting of the company, and not later, or (b) in any case where the company is not required to hold a statutory meeting or where the allotment is made after the holding of the statutory meeting, within two months after the date of the allotment, and not later.(2) The allotment shall be voidable as aforesaid, notwithstanding that the company is in course of being wound up.(3) If any director of a company knowingly contravenes, or wilfully authorises or permits the contravention of, any of the provisions of section or with respect to allotment, he shall be liable to .... To read the full section download the app from Google Play store
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