Effect of irregular allotment

(1) An allotment made by a company to an applicant in contravention of section 87 shall be voidable at the instance of the applicant within one month after the holding of the statutory meeting of the company and not later, and shall be so voidable 77 notwithstanding that the company is in course of being wound- up. (2) If any director of a company knowingly contravenes, or permits or authorises the contravention of any of the provisions of section 87 with respect to allotment, he or she shall be liable to compensate the company and the allottee respectively for any loss, damages or costs which the company or the allottee may have sustained or incurred thereby, provided that proceedings to recover any such loss, damages or costs shall not be commenced after the expiration of two years from the date of the allotment.