Prospectus
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Contents of prospectus or Contents of prospectus or statement in lieu of statement in lieu of prospectus prospectus Prepared By: Prepared By: Usman-ud-Din Usman-ud-Din AD 513464 AD 513464
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Transcript of Prospectus
Contents of prospectus or Contents of prospectus or statement in lieu of statement in lieu of
prospectusprospectus
Contents of prospectus or Contents of prospectus or statement in lieu of statement in lieu of
prospectusprospectus
Prepared By:Prepared By:Usman-ud-DinUsman-ud-Din
AD 513464AD 513464
For obtaining certificate to commence business : -
• A prospectus of a statement in lieu of prospectus
• Share should be allotted within 180 days
• A declaration should be filed with the registrar
Definition: -• Any document described or issued as
prospectus, and includes any notice, circular, advertisement, or other communication, inviting offers from the public for the subscription or purchase of any shares in, or debentures of, a body corporate, or inviting deposits from the public, other than deposits invited by a banking company or a financial institution approved by the federal government, whether described as prospectus or otherwise.
In short : -
• Prospectus is an invitation to the public to become shareholders or to take up debentures. It describes the soundness of the business which the company proposes to undertake and broad idea about its profitability.
Matters to be specified in prospectus (Continue) : -
• The contents of memorandum• No. & value of shares• Remuneration of directors• Details regarding director, CEO,
Managing Agent and sectary• Details in respect of shares offered to
the public for subscription
Matters to be specified in prospectus (Continue) : -
• Date and time of opening and closing of the subscription list.
• Amount payable on application and allotment of shares.
• Details regarding material contracts.• Details regarding debenture.• Amount of premium or discount on
shares and so on.
Conclusion: -Prospectus is a mandatory document
for limited organization to commence their business, but its complicated procedure delays the
operation of any business, therefore a no. of organizations hesitate to issue Prospectus to
general public for subscription of share capital & Debenture.
