Prospectus:
Prospectus is a document issued by the public companies inviting the public to subscribe for shares or debentures of the company. It contains all information regarding the company’s affairs and its future prospects. A prospectus must be dated and signed by all the directors. A copy of the prospectus must be filed with Registrar before it is issued to public.
Contents of prospectus:
1. Name and address of the registered office of the company.
2. Main objects of the company.
3. Classes of shares and debentures.
4. Name, address and occupation of the signatories to the memorandum.
5. Details of the borrowing powers of the company.
6. Name, address and occupation of the directors and managing director.
7. Name and address of the promoters.
8. Minimum subscription.
9. Time of opening and closing of subscription.
10. The amount payable on application and allotment of each class of shares.
11. Name of underwriters.
12. Details of preliminary expenses.
Companies which do not want to issue a prospectus may submit a statement in lieu of prospectus to the Registrar of Companies. It is a copy of the prospectus but is not issued to the public.