Directors who were in default while issue of redeemable preference share were liable to refund amount to investors

COMPANY LAW/SEBI: Where company OIL was engaged in fund mobilizing activity from public, through Offer of RPS and had contravened provisions of sections 56(1), 56(3), 2(36) read with 60, 73(1), 73(2), 73(3) of Companies Act, 1956, all Directors of OIL, at time of issuance of RPS, were officers in default and they would be jointly and severally liable to refund amounts collected from investors with interest at rate of 15 per cent per annum, for non-compliance of above mentioned provisions

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