Section 69 — Allotment of shares and other securities to be dealt in on securities exchange

(1) Where a prospectus, whether issued generally or not,
states that application has been or will be made for permission for the shares or
other securities offered thereby to be dealt in on the securities exchange, any
allotment made on an application in pursuance of the prospectus shall, whenever
made, be void if the permission has not been applied for before the seventh day
after the first issue of the prospectus or if the permission has not been granted
before the expiration of twenty-one days from the date of the closing of the
subscription lists or such longer period not exceeding forty-two days as may, within
the said twenty-one days, be notified to the applicants for permission by the
securities exchange.

(2) Where the permission has not been applied for or has not been
granted as aforesaid, the company shall forthwith repay without surcharge all
money received from applicants in pursuance of the prospectus, and, if any such
money is not repaid within eight days after the company becomes liable to repay it,
the directors of the company shall be jointly and severally liable to repay that money
from the expiration of the eighth day together with surcharge at the rate of two
percent. for every month or part thereof from the expiration of the eighth day
and in addition, shall be liable to a penalty of level 3 on the standard scale.
(3) All moneys received as aforesaid shall be deposited and kept in a
separate bank account in a scheduled bank so long as t he company may become
liable to repay it under sub -section (2); and, if default is made in complying with
this sub-section, the company and every officer of the company who authorises or
permits the default shall be liable to a penalty of level 2 on the standard scale.
(4) For the purposes of this section, permission shall not be deemed to
be refused if it is intimated that the application for it, though not at present granted,
will be given further consideration.
(5) This section shall have effect—
(a) in relation to any shares or securities agreed to be taken by a person
underwriting an offer thereof by a prospectus as if he had
applied therefor in pursuance of the prospectus; and

(b) in relation to a prospectus offering shares for sale with the
following modifications, that is to say—

(i) reference to sale shall be substituted for reference to
allotment;

(ii) the person by whom the offer is made and not the company,
shall be liable under sub-section (2) to repay the money
received from applicant, and reference to the company's
liability under that sub-section shall be construed
accordingly; and

(iii) for the reference in sub-section (3) to the company and every
officer of the company there shall be substituted a reference
to any person by or through whom the offer is made and who
authorises or permits the default.