Contents of prospectus orstatement in lieu of prospectus Prepared By: Usman-ud-Din AD 513464
For obtaining certificate to commence business : -• A prospectus of a statement in lieu of prospectus• Share should be allotted within 180 days• A declaration should be filed with the registrar
Definition: -• Any document described or issued as prospectus, and includes any notice, circular, advertisement, or other communication, inviting offers from the public for the subscription or purchase of any shares in, or debentures of, a body corporate, or inviting deposits from the public, other than deposits invited by a banking company or a financial institution approved by the federal government, whether described as prospectus or otherwise.
In short : -• Prospectus is an invitation to the public to become shareholders or to take up debentures. It describes the soundness of the business which the company proposes to undertake and broad idea about its profitability.
Matters to be specified in prospectus (Continue) : -• The contents of memorandum• No. & value of shares• Remuneration of directors• Details regarding director, CEO, Managing Agent and sectary• Details in respect of shares offered to the public for subscription
Matters to be specified in prospectus (Continue) : -• Date and time of opening and closing of the subscription list.• Amount payable on application and allotment of shares.• Details regarding material contracts.• Details regarding debenture.• Amount of premium or discount on shares and so on.
Conclusion: -Prospectus is a mandatory document for limited organization to commence their business, but its complicated procedure delays the operation of any business, therefore a no. of organizations hesitate to issue Prospectus to general public for subscription of share capital & Debenture.
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