An expert will not be liable for the untrue statement, if he proves that:
(i) After giving his permission to the issue of the prospectus, he withdraws in writing before the delivery of a copy of the of prospectus for registration; or
(ii) He was competent to make the statement and he had reasonable conditions to believe that upto the time of allotment of shares, the statement was correct; or
(iii) After the delivery of a copy of the prospectus for registration but before allotment, he on becoming aware of the mis-statement withdraws his consent in writing and gave public notice & reason thereof.
An expert has the right to claim indemnity against those persons who inserted his name in the prospectus, in case where he has not given his written consent or he has withdrawn his consent before the issue of prospectus.
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