Prospectus of company law.

According to Section 2(36) of the Indian Companies Act, 1956. Prospectus means documents described or issued as Prospectus and includes any notice, circular, advertising or other documents that invite deposits from the public or invite any share’s subscription or purchase of any body corporate proposals from the public; or debenture of a body corporate.

When a company approves its allocation of its shares or debentures for the purpose of purchase by the public, the documents by which the public suggests to send the shares or debentures of the company are defined as the prospectus of that company. Such documents should not only apply for personal distribution. It may be possible that it can be extended to a limited portion. One thing about Prospectus is that until it’s made public, provisions of the Companies Act relating to Prospectus cannot be applied to that company. Whether or not a Prospectus issue is created, it depends on the facts of each reference and its firm explanation is not possible.

Content of Prospectus – The Companies Act regarding the content of Prospectus has the following draw-vision so that individuals interested in investing capital in the company can get sufficient protection-

(1) Each prospectus should be marked with a necessary date so that firm knowledge can be obtained on which date it is published.

(2) Registration of each Prospectus is required. According to section 60 of the Indian Companies Act, each Prospectus should be signed by all directors or proposed agents of the Company and after the issue of Prospectus it is required to be registered in the Company Registrar’s office.

The following documents should also be connected to the prospectus submitted for registration.

1. A copy of contract relating to the managers’ remuneration,

2. If the name of a banker, legal advisor or accountant is sent to Prospectus, their written agreement should also be submitted with Prospectus,

3. If an expert report about the company’s business to be published, then acceptance of that expert,

4. A copy of each contract or other than the contract or magazine made by the company two years ago under normal behavior,

5. A copy of application for buying shares should also be associated with Prospectus.

If a company or an officer releases the Prospectus without violation of section 60 of the Act, that company or every respective guilty officer will be punished with Rs. 5000/- Usually it will be printed on the front page of the Prospectus that it is registered and all necessary documents are submitted to the Company Registrar with it.

(3) Expert Statement – According to Section 58, if a company’s Prospectus has any statement which is equal in the opinion of experts, then the company shall be required to obtain the written approval of that expert and it shall be clearly mentioned in its Prospectus to this fact, but the expert should not be a person who himself interested in the operation, improvement or management-rules of the company. This is why it has legal importance that this gives security to the person interested in investing capital in the company’s business as they can declare that exports responsible for the faulty statement so that he can form a party releasing the Prospectus.

(4) Index of Prospectus- According to section 56 of the Indian Companies Act, the expressed description of all the points is required in the Prospectus of the Company which is referred to in Schedule II of the Act. This program is divided into three parts. The first part includes points that should be mentioned by the company in its Prospectus. According to Part I of Schedule II, the following marks must be available in Prospectus-

(1) the name, the number of shares on the memorandum of the company and the number of shares requested by them and the main items of the company.

(2) Number of shares issued by the company and interest to the shareholders by the company’s property and profit.

(3) Number of fixed-term Roastable preference shares and the date of redeeming of these shares and expected information.

(4) If the public proposes to sell shares then the amount of minimum subscription should be mentioned which may be purchased by the company required to start a business.

(5) Names, remuneration and address of the directors.

(6) Open the date of membership list.

(7) If a person has been provided special preference in the sequence of shares then the details of his or her option provided to him.

(8) On each part and the amount paid at the time of allocation. If the allocation of shares is being re-assigned then it will be mentioned how much amount was issued during two years of allocation and how much more the number of shares was made.

(9) Details of premium received during the last two years.

(10) The number of shares or debentures which was released for any other consideration besides cash during two years.

11. Details of sellers who have sold or ready to sell to any company and that cost is paid out of the income of resources.

(12) Initial expenses of the company.

(13) The amount paid or any other benefit they have to be paid to the connector.

The company’s details and other details of the company may be available during a period of two years.

(14) Rights of shareholders in respect of voting and presence in the meeting, and rules and restrictions regarding the right to vote.

(15) Restriction of transfer of shares.
Company-Regular.

(16) Restriction of the rights of the directors in.

(17) The particulars of the place or time where these eggs can be checked.

(18) Name and address of the Company’s auditors.

(19) If capital is expelled from the reserve treasures or profits of the company, its details.

(20) Other information which are considered by the company required to publish to attract the public.

According to Part 2 of Schedule II, the following should also be described in Prospectus-

(1) The Company’s Accountant Report what was the profit and loss to the Company during the last five financial years and what is the status of its finance and liabilities.

(2) Company report given by the auditors about the Company’s profit, loss and property and liabilities. The details of the bonus rate given on shares of each class of the company during five financial years from the date of the Prospectus issue should be given in the report.

(3) If the company wants to start a particular business, the accountant must mention about it in its report. The accountant’s name should also be clearly mentioned.