Concept of Prospectus in Company

1. Objective
To Learn
1. The concept of Prospectus in
company
Regarding contents
I. Name of the company
II .The registered office of the company
III. The main object of the company
IV. Information about share listed
V. Rights of share holder
VI. The qualification share for directors (if any)
VII. Remuneration of director
VIII. The minimum subscription
IX. Time of opening and closing
X. The number of shares and debenture issued
xi. The name of under writer
Xii. Vendors and the amount paid for the property
Xiii .Particular of promoters and remuneration
xiv. Preliminary expenses
xv. Details of contracts
xvi. Voting rights of members
xvii. Particular of the auditor
xviii. Reserve capital
xx. The name of the broker and bank
xxi. Clause of Registration
Civil liability
Against company
Rescind the contract
Against director/ expert
Damages
Compensation
Criminal liability
Fine
Imprisonment 2 year
With both
Defence open for director
Without his consent as a director issued
without his knowledge Withdrawal his
consent and published
Defense for exports:
Without his consent
Issued without his knowledge
Withdrawal his consent and notice
publicly
Believed on reasonable ground
Legal Requirements
1. It must be dated
2. Time limit must be given
3. Statement of expert must be
given
4. Consent of expert must be
given
5. Approval of the registrar
must be taken
6. Copy to the registrar must be
Submitted
Definition:Any documents describedor issued as a prospectus,including all notices,
circulars and advertisement for public to subscribe the share of company. or
Prospectus is a documents by which bulk of the masses are invited to
subscribe to share capital of company
Philosophy of issuance
To raise the capital by inviting the public
Permissible
Only for public company
Regarding Reports
i. Reportof Auditor
-Profit and loss of the last 5 years
-Rate of dividends
-Asset and liability at the time of last account
-Similar reports with respect of subsidiary
ii. Report of Accountant
-if buy a business
-The positionof the business
-If buy the shares in any company the
Reports of the Concerned accounted
Regarding consent
The consentof experts (auditors etc)
Regarding signature
Sign of the directors
Procedure for publication
The prospectus will be registered
A board of directors will pass a resolution
A copy of prospectus will be delivered to the registrar before publishing
The date of publication will be determined in resolution
Then it will be published within 90 days
Liability for untrue statement
Subject: Company Law
Standard: LL.B second year
Topic: Prospectus
MUNIR HUSSAIN KTK
Lecturer
UNIVERSITY LAW COLLEGE
QUETTA
www.facebook.com/pages/Corridor-to-Commercial-Law
Prospectus
Initial
Subsequent
Regarding Contents
Regarding Reports
Regarding Consent
Regarding Signature