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2) A company issued a prospectus. All the statements contained therein were true. It also stated that the company had paid dividends for several

2) A company issued a prospectus. All the statements contained therein were true. It also stated that the company had paid dividends for several years, but did not disclose the fact that the dividends were not paid out of trading profits, but out of capital profits. An allottee of shares wants to avoid the contract on the ground that the prospectus was false in material particulars. Discuss whether can he do so.

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