It containing all material and essential information about the companys affairs and its future prospectus Definition Prospectus defined as any document described or issued as a prospectus and include any notice circular advertisements or other documents inviting deposits from the pub ID: 1029674
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1. Prospectus :It is invitation to the public to subscribe to the shares or debentures of a company is done by issuing the statement or document is known as PROSPECTUSIt containing all material and essential information about the company’s affairs and its future prospectus.
2. Definition:Prospectus defined as “any document described or issued as a prospectus and include any notice, circular, advertisements or other documents inviting deposits from the public or the subscription or purchase of any shares in or debentures of a body corporate”
3. Objectives of issuing prospectus:To inform the public about the formation of a new company.To state the prospectus of the company and to induce the public to subscribe to the shares or debentures of the company.To invite offers from the public for the subscription or purchase of the shares or debentures of the company.To create confidence in the public about the company by providing complete accurate and reliable information and by making the directors responsible for the information given in the prospectus.To have an authenticated records of the terms and conditions on which the shares or debentures are issued by the company
4. Legal rules or provisions of the companies act regarding the issue of prospectus:Prospectus must be dated (section 26 (1)(3))A copy of the prospectus must be filed with the registrar on or before its publication (section (26 (4))Documents must be attached to the copy of prospectus filed with the registrar.The prospectus must contain a statement that a copy has been delivered for registration to the company registrar.Prospectus must be issued within 90 days of its registration either by newspaper advertisement or otherwise (Section 26(8))
5. The consent of the expert should be obtained (Section 26(5))The signing of prospectus.The terms of the contracts not to be varied.Issue of application form for share or debenture.