(b)The Chinpak Holdings Ltd. Company issued a prospectus stating all the details of the company, including its share capital, pre-incorporated contracts. All the statements were signed by the two Directors, Auditor and the CFO. Mr. Bhola Ram subscribed for securities of a company acting on the above statements. However, it was proved that the prospectus was issued with the intention to defraud the applicants. (i) What are the rights of Mr. Bhola Ram? (ii) What is the liability and who are liable for the mis-statements in the prospectus?
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