A prospectus includes the financial status, the officers, the plans, Contents of prospectus obligations such as lawsuits of the corporation, recent performance and other matters which would assist the potential investor or investment adviser to evaluate the stock and the prospects of the company for profit, loss, or growth.
In short, untrue statement means and includes any statement which is not only a false statement but also a statement which creates a wrong impression of Contents of prospectus fact.
Statement in Lieu of Prospectus When the prospectus is not issued by the company a statement in lieu of prospectus, must be filed with the Registrar at least three days before the allotment of shares. A company secures capital by the issue of prospectus inviting deposits or offers for shares and debentures from the public.
The time of the opening of subscription list should also be stated. It maintains all authentic records on the issue and make the directors liable for the misstatement in the prospectus.
But a public company having share capital has to obtain a certificate which is called a trading certificate or a certificate to commence business from the Registrar before it can comment business. The important matters included in the prospectus are as follow. A prospectus is a document or a publication by, or on behalf of, a corporation containing information on the character, nature, and purpose of an issue of shares, debentures, or other corporate Securities that extends an invitation to the public to purchase the securities.
Defence available in an action on the prospectus: Requirements of a Correct Prospectus: The company must comply with the provisions of Sec.
History of the company. Under financial information, the following particulars are provided. The information contained in this prospectus is current only as of its date. Full particulars of the signatories to the Memorandum and number of shares taken by them.
It serves as a written evidence about the terms and conditions of issue of shares or debentures of a company. If any company commences business before obtaining the certificate of commencement of business, i. If the foregoing conditions have duly been complied with the Registrar, he will certify that the company is entitled to commence business and it is exclusive evidence that the company is now entitled to commence business.
Features, Contents and Mismatch Article shared by: The following reports are to be annexed: He was competent to make such statement and he had reasonable grounds to believe and did up to the time of the allotment of shares and debentures, believe that the statement was true.
An audit report of the company relating to: Forms and Contents of the Prospectus: The name and addresses of the vendors of any property acquired by the company and the amount paid or to be paid. Contents of Prospectus of a Company: In other words, any advertisement offering shares or debentures of the company for sale to the public is a prospectus.Mar 12, · The prospectus is the very foundation of a company’s edifice.
It is the document which is to contain all material facts concerning a company and its operation so that a prospective investor may make an informed decision as to 5/5. Prospectus is an invitation issued to the public to offer for purchase/subscribe shares or debentures of the company.
In other words, any advertisement offering shares or debentures of the company for sale to the public is a prospectus. After reading this article you will learn about: 1.
Meaning of Prospectus 2. Features and Characteristics of Prospectus 3.
Forms and Contents 4. Mis-Statements 5. Statement In Lieu of Prospectus 6. Red Herring Prospectus. Sec.
2(36) of the Companies Act describes a prospectus as “any document. FormThe prospectus should include a title page listing the name of the members of the prospectus committee, specifying the principal advisor.
The prospectus should conform (as later also the dissertation) to the standards in scholarly writing within the field in terms of style, including transliteration, transcription, and translation of ancient languages. Contents of Prospectus of a Company includes the following In contents, the detailed description regarding the establishment of the company, its characteri.
The selling stockholders identified in this prospectus are offering an additional 3, shares. Zipcar will not receive any of the proceeds from the sale of the shares being sold by the selling stockholders. Prior to this offering, there has been no public market for the common stock.
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