Section 703 of The Companies Act No. 17 of 2015: Liability of directors for false or misleading statements in company’s financial statement and reports
(1) This section applies to the following documents—a directors’ report; a directors’ remuneration report; and
a summary financial statement so far as it is derived from either of those reports.
(2) A director of a company is liable to compensate the company for any loss suffered by it as a result of— any untrue or misleading statement in a document to which this section applies;
or the omission from a document to which this section applies of anything required
to be included in it.
(3) A director of a company is liable under subsection (2) only if the director knew or ought reasonably to have known— the statement to be untrue or misleading or was reckless as to whether it was
untrue or misleading; or the omission to be dishonest concealment of a material fact.
(4) A director is not liable to a person other than the company as a result of the person having relied on information contained in a document to which this section applies.
(5) The reference in subsection (4) to a director not being liable includes a reference to another person being entitled as against the director to be granted any civil remedy or to rescind or repudiate an agreement.
(6) This section does not affect a person's liability for a criminal offence.
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