Use app×
Join Bloom Tuition
One on One Online Tuition
JEE MAIN 2025 Foundation Course
NEET 2025 Foundation Course
CLASS 12 FOUNDATION COURSE
CLASS 10 FOUNDATION COURSE
CLASS 9 FOUNDATION COURSE
CLASS 8 FOUNDATION COURSE
0 votes
94 views
in Formation of a Company by (29.7k points)
closed by

Vishnu, a promoter of a public company, approaches you to get information relating to raising of capital from public. As a commerce student mention the document required for inviting the public to purchase or subscribe to its shares and debentures. Explain.

1 Answer

+1 vote
by (29.6k points)
selected by
 
Best answer

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.

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

...