Prospectus

“Prospectus is an invitation, advertisement or circular inviting people to offer to invest in the company by purchasing the shares of the company”.

Essentials of the prospectus:

For being legal prospectus , it must have following essentials:

• It must invite public to offer to buy shares.
• Before its publication, a copy of it must be submitted to the registrar of the company.
• There must be date on the prospectus.
• It must be signed by all directors / subscribers of the company.

Contents of prospectus:

The prospectus contains the following:

• Name, address and objectives of the company.
• Names, addresses and qualification of the directors.
• Salaries, allowance etc. of the directors.
• Names, addresses, qualifications and salaries of the managing directors and secretary.
• Subscribed capital of the company.
• Numbers and kinds of shares.
• Minimum subscription of the shares.
• The procedure and last date for submitting application for shares.
• Names and addresses of the auditors and the audit report of last year.
• Date of incorporation of company and details of expenditures incurred.
• Details of all contracts of the company.
• Names and addresses of the advisors and banker of the company.