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Business Environment and Law-Prospectus And Statement In Lieu Of Prospectus

Registration of the Prospectus (Section 60): - Prospectus And Statement In Lieu Of Prospectus

   Posted On :  08.05.2018 08:10 am

A copy of the prospectus duly signed by every director or proposed directors must be delivered to the registrar before its publication.

Registration of the Prospectus (Section 60):
 
 
A copy of the prospectus duly signed by every director or proposed directors must be delivered to the registrar before its publication.
 
Is the issue of prospectus compulsory?: when prospectus is not required to be issued?
 
The following are the circumstances:
 
             A private company
 
             If the promoters or directors feel that they can mobilize resources through personal relationship and contacts.
 
             A Memorandum containing the prescribed salient features of a prospectus.
 
             A bonafide invitation to a person to enter into an underwriting agreement Sec.56(3)
 
             Application form is issued in relation to shares or debentures not offered to the public [Sec. 56(3)]
 
             Offered to existing holders of shares or debentures[Sec. 56(5)]
 
             The issue relates to shares or debentures previously issued [Sec. 56(5)]
 
             Where invitation is made in the form of an advertisement, ordinarily called as “prospectus announcement’ [Sec. 66].

 

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