Prospectus of a company


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Prospectus of a company

  2. 2.  A document described or issued as prospectus and includes any notice, circular, advertisement or other document inviting deposits from the public or inviting deposits from the public for subscription or purchase of shares or debentures of a company. WHICH COMPANIES ARE REQUIRED TO ISSUE PROSPECTUS:  Every public listed company who intends to offer shares or debentures of the company to the public.  Every private company who ceases to be a private company and converts into a public company and intends to offer shares or debentures of the company to the public.
  3. 3.  A Prospectus is required to be issued only after the     incorporation of company. The prospectus must contain all the particulars, listed in the schedule II of Companies act. The prospectus must be dated. Before a prospectus is issued, a copy of it must be registered with the registration of companies. Prospectus shall be issued within ninety days of its registration .
  4. 4.  GENERAL INFORMATION (i)Name and address of registered office of company. (ii)Name of stock exchange where application for listing is made. (iii)Date of opening of the issue. (iv)Date of closing of the issue. (v)Name and address of companies manager and managing directors
  5. 5. Every prospectus issued by or on behalf of a company must be dated and that date shall unless the contrary is proved, be regarded as the date of its publication. (section 55). A copy of the prospectus signed by every director or proposed director or by his agent must be delivered to the registrar on or before the date of publication. The prospectus issued to the public should mention that a copy of the prospectus along with the specified documents have been filed with the register.
  6. 6.  A prospectus must not be issued more than 90 days after the date on which a copy there of is delivered for registration. If a prospectus is so issued it will be deemed to be a prospectus a copy of which has not been delivered to the registrar.
  7. 7.  A public limited company, 1. which has not issued a prospectus.2.which has issued a prospectus, but has not proceeded to allot any of the shares, offered to the public for subscription, is required to deliver to Registrar a “statement in lieu of prospectus” for registration, at least three days before the allotment of shares or debentures.
  8. 8. Schedule III contains the details of the particulars to be furnished. In case of private company becoming a public company, statement in lieu of the prospectus can be filed. Schedule IV contains the details of the particulars to be furnished for the same. Such a statement is required to be signed by every person, who is named therein as a director or a proposed director, of the company, or by his agent authorized in writing.
  9. 9.  If allotment of shares or debentures is made without filing the statements in lieu of prospectus, the allottee may avoid it within two months after the statutory meeting, or where no such meeting is to be held, within two months of the allotment. Contravention also renders the company and every director liable to fine up to rupees 10,000.
  10. 10. 1. Contents of the Memorandum with the names, addresses and occupations of the signatories of the memorandum and the number and value of shares subscribed by them and their interest in the property and profits of the company. This content is not required if the prospectus is published in newspaper or issued after 2 years from the commencement of business. 2. Description of the business and length of time during which the business of the company has been carried on. 3. Names, addresses and occupation of proposed or existing Chief Executive, directors, secretary and any other Company in which they hold office. 4. Remuneration to Chief Executive and directors.
  11. 11. THANK YOU