What are the provisions of the Act regarding the issue of a prospectus?

The prospectus must be issued within 90 days of its registration. A prospectus issued after the said period shall be deemed to be a prospectus, a copy of which has not been delivered to the Registrar for registration.

What are the criteria on the issue of prospectus to the public?

Every prospectus issued to the public should mention that a copy of the prospectus along with the specified documents has been filed with the registrar. If prospectus includes a statement made by an expert, the expert must not be engaged or interested in the formation or promotion or in the management of the company.

What are the provisions regarding red herring prospectus?

A red herring is a preliminary prospectus filed with the SEC, usually in connection with an IPO—excludes key details of the issue, such as price and number of shares offered. The document states that a registration statement has been filed with the SEC but is not yet effective.

What are the provisions of Companies Act regarding allotment of shares?

According to Section 69(1) of the Companies Act, no allotment can be made by the company until the minimum Subscription has been received. In accordance with Section 69(3), the amount payable on each share should not be less than 5 per cent of the Nominal Value of the shares.

What are the essentials for a document to be called as prospectus?

Essentials for a document to be called as a prospectus

The document should invite the subscription to public share or debentures, or it should invite deposits. Such an invitation should be made to the public. The invitation should be made by the company or on the behalf company.

Provisions Regarding Registration and Issue of Prospectus

What is prospectus under Companies Act, 2013?

Section 2(70) of the Companies Act 2013 defines Prospectus as “any document issued for advertisement or other document inviting offers from the public for the subscription or purchase of any securities of a body corporate”.

What is a prospectus in company Act?

A prospectus is defined as a legal document describing a company's securities that have been put on sale. The prospectus generally discloses the company's operations along with the purpose of the securities being offered.

What are the various provisions under the Companies Act 2013?

What are the provision of Companies Act in respect of registration and satisfaction of charges?

6 When a Charge Satisfaction is to be reported to the Registrar and by whom? A company shall give intimation to the Registrar, of the payment or satisfaction in full of any charge registered within a period of thirty days from the date of such payment or satisfaction.

What are the various provision in Companies Act, 2013 regarding underwriting commission?

According to Companies Act, underwriting commission should not exceed 5 per cent of the nominal value of a share and 2½ per cent in the case of debentures. ADVERTISEMENTS: A brokerage contract is different from an underwriting contract.

What is meant by prospectus?

A prospectus is a formal document that is required by and filed with the Securities and Exchange Commission (SEC) that provides details about an investment offering to the public. A prospectus is filed for offerings of stocks, bonds, and mutual funds.

Who can issue regulations regarding shelf prospectus?

A shelf prospectus can be issued by any public limited company raising funds through multiple issues of bonds. Companies which issue a shelf prospectus should file an Information Memorandum in Form PAS-2.

What are the different types of prospectus?

What is to be disclosed in the prospectus as per provisions of section 26 1 )?

(iii) the disclosure for sources of promoters contribution shall also include the particulars of name, address and the amount so raised as loan, financial assistance etc , if any, by promoters for making such contributions and in case of own sources, complete details thereof.

What are the provisions of charges?

Charge created on specific & identifiable assets. Eg: – Charge on building, plant & machinery, etc. If company want to deal with charged assets than it is only possible with the permission of charge holder.

What are the statutory provisions for registration of charges?

The registration of charges is given in Section 77(1), Section 78 and Section 79 of the Companies Act. The particulars of a charge together with a copy of the instrument creating or modifying the charge must be filed with the Registrar of Companies.

What is Section 77 of Companies Act, 2013?

SECTION 77. DUTY TO REGISTER CHARGES, ETC. Provided also that any subsequent registration of a charge shall not prejudice any right acquired in respect of any property before the charge is actually registered.

What are provisions relating to financial statements under the new Companies Act, 2013?

Section 129(1) of the companies act, 2013 provides that the financial statements (i) shall give a true and fair view of the state of affairs of the company or companies, (ii) comply with the accounting standards notified under S.

What are the provisions of one person company under Companies Act, 2013?

A new concept has been introduced in the Company's Act 2013, about the One Person Company (OPC). In a Private Company, a minimum of 2 Directors and 2 Members are required whereas in a Public Company, a minimum of 3 Directors and a minimum of 7 members. A single person could not incorporate a Company previously.

Which provision is given in section 105 of the Companies Act 2013?

Under Section 105(1) of the Companies Act, 2013 (hereinafter, CA), any member who is entitled to attend and vote in a company meeting can appoint a proxy. However, a proxy cannot be appointed by a member of a company not having a share capital unless the Articles provide for it.

What is the need of issuing prospectus?

A document issued by a company to invite the public and the investors for subscribing the securities is called a prospectus. The prospectus contains detailed information on the securities. A public company can issue the prospectus to offer its shares and debentures, whereas a private company cannot issue prospectus.

What are the objectives of issuing prospectus?

Objectives of Issuing Prospectus:

To bring to the notice of the public that a new company has been formed. To preserve the authentic record of the terms and allotment on which the public have been invited to buy shares or debentures of the company.

What are the main contents of a prospectus?

Which section of Companies Act, 2013 is related to issue of shelf prospectus?

Section 31. Shelf prospectus. Companies Act Integrated Ready Reckoner|Companies Act 2013|CAIRR.

Which section of Companies Act, 2013 is related to issue of red herring prospectus?

Section 32. Red herring prospectus | Companies Act Integrated Ready Reckoner|Companies Act 2013|CAIRR. (1) A company proposing to make an offer of securities may issue a red herring prospectus prior to the issue of a prospectus .