According to the company Act 1994, section 145(1) the persons who are liable for misstatement in the prospectus shall be liable to pay compensation to every person who subscribes for any share or debenture on the faith of the prospectus for any loss or damage.
These are,
01. Every person who is a director of the company at the time of issue of prospectus
02. Every person who has authorized himself to be named and is named in the prospectus.
03. Every person who is a promoter of the company and
04. Every person who has authorized the issue of prospectus.