This is a presentation on Company Prospectus, prepared so as to aid law students as well as business management aspirants to create a better understanding about the topic.

1. COMPANY
PROSPECTUS
SHWETANG PANCHAL
M. S. UNIVERSITY OF BARODA

3. ● A document described or issued as prospectus and
includes any notice, circular, advertisement or other
document inviting deposits from the public or
inviting the offers from public for subscription or
purchase of shares or debentures of a company.
DEFINITION

4. COMPANY PROSPECTUS
● MEANING.
● LEGAL REQUIREMENTS OF PROSPECTUS.
● TYPES OF PROSPECTUS.
● CONTENTS OF PROSPECTUS.
● FORMALITIES IN ISSUING COMPANY PROSPECTUS
● STATEMENT IN LIEU OF A PROSPECTUS.
● RULES OF PUBLIC DEPOSITS.

5. ● Company prospectus is released by company to
inform the public and investors of the various
securities that are available. These documents
describe about mutual funds, bonds, stocks and
other forms of investments offered by the company.
A prospectus is generally accompanied by basic
performance and financial information about the
company.
MEANING

6. ● 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 .
LEGAL REQUIREMENTS OF
PROSPECTUS

7. ● ABRIDGED PROSPECTUS.
● DEEMED PROSPECTUS.
● SHELF PROSPECTUS.
● RED HERRING PROSPECTUS.
TYPES OF PROSPECTUS

8. 1. GENERAL INFORMATION
a)Name and address of registered office of
company.
b)Name of stock exchange where application for
listing is made.
c)Date of opening of the issue.
d)Date of closing of the issue.
e)Name and address of companies manager and
managing directors
CONTENTS OF A PROSPECTUS

9. 2. CAPITAL STRUCTURE OF COMPANY
o Authorized, issued, subscribed, and paid-up capital.
o Size of the present issue giving separately
reservation for preferential allotments to promoters
and others.
3. PARTICULARS OF THE ISSUE
o Objects
o Project cost.
o Means of financing.
CONTINUED...

10. 4. OUTSTANDING LITIGATION
o Relating to financial matters or criminal
proceedings against the company or directors
under Schedule.
5. CERTAIN PRESCRIBED PARTICULARS
o In regard to the company and other listed
companies under the same management, which
made any capital issue during the last 3 years.
CONTINUED...

11. ● 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.
FORMALITIES IN ISSUING
COMPANY PROSPECTUS

12. ● A prospectus must not be issued more than 90
days after the date on which a copy thereof 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.
CONTINUED...

13. 1. A public limited company
a. which has not issued a prospectus.
b. which has issued a prospectus, but has not
proceeded to allot any of the shares,
c. 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.
STATEMENT IN LIEU OF A
PROSPECTUS

14. ● 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.
CONTINUED...

15. ● 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.
CONTINUED….

16. ● No deposit can be invited, without an advertisement
specifying the financial conditions, management structure
and other required particulars of the company.
● Declaration as to repayment of the deposit, in
accordance with the terms and condition.
● Provision for nomination to be available.
● No deposit payable on demand or repayable before three
months can be accepted.
● A company cannot accept deposits, repayable after three
years.
● A company cannot accept deposits beyond 10% of the
paid-up capital.
RULES OF PUBLIC
DEPOSITS

18. THANK YOU!
QUESTIONS? IF ANY?