1. Objective
To Learn
1. The concept of Statement in Lieu of Prospectus
2. Certificate of business
Difference between
prospectus and statement in lieu of
prospectus
On the Basis of Definition:
Prospectus is define but no
definition is made for statement in lieu
of prospectus
On the Basis of Object:
Prospectus is issued to invite the
public and the object of statement on
lieu of prospectus is to satisfy the
register
On the Basis of Liability:
In case of prospectus the director
are personally responsible but in
statement in lieu of prospectus they
are not responsible
On the Basis of Form:
No special form is prescribed in
ordinance for prospectus but for
statement in lieu of prospectus.
Definition:
A document prepared by a public
company in prescribed form when it
does not want to issue a prospectus on
its formation.
Philosophy of issuance:
Capital subscription is privately
arranged
If the public response is poor to the
prospectus issued
Scope of statement:
That they can arrange or raise the
required capital without assistance
of public
Contents:
As in prospectus
Incorrect statement:
Companies’ ordinance is silent
Procedure:
Must be signed by the director
Present before registrar for registration
Minimum subscription is achieved.
on satisfaction of Registrar
Certificate of business
The entire director paid to the company the value of their
respective share.
Commencement of business
Subject: Company Law
Standard: LL.B second year
Topic: Statement in Lieu of Prospectus
MUNIR HUSSAIN KTK
Lecturer
UNIVERSITY LAW COLLEGE
QUETTA
www.facebook.com/pages/Corridor-to-Commercial-Law
Lecture will be followed by Presentations.
Bring your Assignment for Presentation
