Section 95: Allotment of securities and dealing on securities exchange, etc.

(1) Where a prospectus, whether issued generally or not, states that application has been or will be made for permission for the securities offered by it to be dealt with on any securities exchange or capital trade point, any allotment made on an application in pursuance of the prospectus shall, whenever made, be void if the permission has:
(a) not been applied for before the third day after the first issue of the prospectus; or
(b) been refused before the expiration of three weeks from the date of the closing of the subscription lists or such longer period not exceeding six weeks as may, within the said three weeks, be notified to the applicant for permission by or on behalf of the securities exchange or capital trade point.
(2) Where permission for a dealing referred to in subsection (1) of this section has been applied for or if applied for has been refused, the company shall immediately repay, without interest, all monies received from applicants in pursuance of the prospectus and if the monies are 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 the monies with interest at the current bank rate per annum from the expiration of the eight days, but a director shall not be liable if he proves that the default in the repayment of the monies was not due to any misconduct or negligence on his part.
(3) All monies received by virtue of this section shall be kept in a separate trust account on such terms and conditions as may be prescribed by the Commission so long as the issuing house may become liable to repay the monies specified under subsection (2) of this section; and if default is made in complying with this subsection, the issuing house and any of its officers, who is in default shall be jointly and severally liable to a penalty of N1,000,000 and a further sum of not less than N50,000 for everyday the violation continues.
(4) Any condition requiring or binding any applicant for securities to waive compliance with any requirement of this section is void.
(5) For the purposes of this section, permission shall not be deemed to be refused if it is intimated that the application for permission, though not at the time granted, shall be given further consideration.
(6) This section shall have effect:
(a) in relation to any securities agreed to be taken by a person underwriting an offer by a prospectus as if he had applied for them in pursuance of the prospectus; and
(b) in relation to a prospectus offering securities for sale, with the following modifications:
(i) references to sale shall be substituted for references to allotment,
(ii) the persons by whom the offer is made and shall be liable under subsection (2) of this section to repay monies received from applicants, and references to the company's liability under that subsection shall be construed accordingly, and
(iii) for the references in subsection (3) of this section to the company and every officer of the company who is in default there shall be substituted references to any person by or through whom the offer is made and who knowingly and wilfully authorises or permits the default.