If a company does business or exercises any borrowing powers in contravention of section 761, an offence is committed by—
the company, and
every officer of the company who is in default.
A person guilty of an offence under subsection (1) is liable—
on conviction on indictment, to a fine;
on summary conviction, to a fine not exceeding the statutory maximum.
A contravention of section 761 does not affect the validity of a transaction entered into by the company, but if a company—
enters into a transaction in contravention of that section, and
fails to comply with its obligations in connection with the transaction within 21 days from being called on to do so,
the directors of the company are jointly and severally liable to indemnify any other party to the transaction in respect of any loss or damage suffered by him by reason of the company's failure to comply with its obligations.
The directors who are so liable are those who were directors at the time the company entered into the transaction.