Under Section 45 (1) of the Companies Act persons who are party to the issue of a prospectus containing any untrue statement may be held liable to compensate a third party who has suffered loss or damage reason of subscribing for shares or debentures on the faith of such statements. However an expert may escape liability in certain circumstances. Identify these circumstances.

 If he withdraws his consent in writing before a copy of the prospectus is delivered to the registrar for registration.

If on becoming aware of the untrue statement after its delivery to the registrar for registration but before allotment, he withdrew his consent in writing and gave reasonable public notice of the withdrawal and reasons therefore.
He was competent to make the statement in question and had reasonable ground to believe and did believe up to the date of allotment that the statement was true.

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