Schedule IV - Statement in lieu of Prospectus
sweta
(Querist) 25 June 2010
This query is : Resolved
Dear All,
Can anyone explain me the contents of the Statement in Lieu of Prospectus.
Regards,
Sweta
Manish Singh
(Expert) 25 June 2010
Statement in lieu of prospectus is similar to actual prospectus but without the invitation to the public for subscribing to the shares of the company. This statement is prepared when a company issues shares by private placement. The statement in lieu of prospectus is prepared for the purpose of record, and it is filed with the Registrar of Companies before allotment of share.
1. The prospectus contains a summary of the past, present and prospects of the company
2. The prospectus expressly invites the public to buy shares issued by the company
3. It is the basis of share issue. The contents of prospectus are considered legal evidence in the event of dispute between share holder and the company.
4. A misleading clause in the prospectus will be taken seriously by the courts.
Contents of the Prospectus
Following are the items generally included in the prospectus:
1 Name of company and location of the registered office of the company
2. Main objects of the company
3. The number and classes of the shares to be issued
4. Names and addresses of the directors, managing director their qualification shares.
5. Provisions regarding the remuneration of directors
6. The minimum subscription to be raised by share issue
7. The amounts payable on application, allotment for each class of shares
9. Rights, privileges and restrictions each class of shareholders
10. Underwriters to the issue
11. Merchant bankers to the issue
12. Registrars to the issue
