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in Formation of a Company by (29.7k points)
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Nisha, Shani and Sheena are promoters of a public company. But they do not want to raise capital by approaching the public. They decide to raise capital by issuing shares to a few persons. Is it possible? If yes, what document is used for raising capital?

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Yes. They can raise capital by issuing shares to a few persons. For this they can issue Statement in lieu of prospectus.

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