831. Liquidation of company in cases of contracts to take shares.

A defence for the representor1 may arise where the contract sought to be rescinded is a contract by which the representee2 became a member of a limited company. In this case, the winding up or insolvency of the company is a bar to any relief by way of rescission unless the representee has already begun proceedings for rescission or agreed with the company to be bound by such proceedings brought by some other person or has taken other appropriate steps to have his name removed from the register