Companies Act (Cap. 386), article 98

98. (1) An allotment made by a company in contravention of article 97 shall be voidable at the instance of the applicant f or shares referred to in the same article by sworn application fil ed within one month after the date of the allotment: Provided that the proceedin gs may be commenced even if the company has been dissolved and is being wound up. (2) If a director knowingly contravenes or permits or authorises the contravention of article 97, he shall be liable to compensa te the company and the allottee respectively for any loss, damages or costs which the company or the allottee may have sustained or incurred by the contravention: Provided that proceedings to recover any such loss, damages or costs shall only be commenced by sworn application within two years from the date of allotment. COMP ANIES [CAP. 386. 63 Time of the opening of the subscription lists. Amended by: L.N. 391 of 2005.