12.5.12 (The Expert Consent to the Issue of Prospectus)

A prospectus may contain a statement purporting to be made by an expert. The term 'expert' includes an engineer, a valuer, an accountant and any other person whose profession gives authority to a statement made by him. The reports from an expert must not be included in a prospectus unless:

            (i) Such expert is unconnected with the formation or management of the company (s.57);

            (ii) he gave his consent (s.58);

            (iii) he is competent to make the report, valuation or statement;

            (iv) a statement that he has given and not withdrawn his consent thereto appears in the prospectus (s.58).

If the report of the expert is published in contravention of the above mentioned provisions, every person who is knowingly a party to the issue of the prospectus shall be punishable with fine up to Rs 50,000 (s.59).