Contents of Prospectus

Contents of Prospectus

Contents of Prospectus

The prospectus is an invitation to the public to subscribe the share capital of the company. Generally, it refers to that informative document that the registered organization uses for the purpose of informing people aid inviting people to buy the shares of the respective company to collect required capital and to start the proposed organization. The contents of prospectus according to the Companies Act, 1994, as follows:

  • Name of the Company.
  • Address of the head office of the company.
  • Objectives of the company.
  • Name of the people who put signature, their address, profession & the description about how much shares they bought among the various classes.
  • A number of shares and their classifications.
  • A number of debentures and their classifications.
  • A number of shares regarding worthless of directors and prices.
  • Enrolment of the directors.
  • The shareholder’s power of voting and dividend policy.
  • Profit of the company and contribution of the shareholders in the asset of the company.
  • Policy and method of distributing the profit.
  • The name, address of directors, managers, executives etc.
  • If there any rules and regulations in Articles of Association regarding directors, executives, and delegates of the managers.
  • Description about any provision regarding voting or transferring of shares.
  • The number of primary expenses at initiating the company.
  • The amount of price of each share at the time of application and distribution.
  • The name and address if there is any person who takes the liability of the shares and debentures. Besides, whether the liable person is capable to cover the liability or not, the directors require the explanation about this.
  • The method of the retained earnings being used.
  • The persons, from whom an asset/property is bought prior to or at the time of starting the business and the name, address, and explanation of the respective property. The price of that property is being paid by hard cash or is being paid by issuing shares or debentures.
  • Auditors name & addresses.
  • Before the formulation of the company whether there are any contracts with any person or any company or any firm.
  • Explanation alas the company’s profit & loss accounts, liability and assets a/c and explanation of the auditors regarding this.
  • The explanation of the auditor’s aid at the time of starting the business.
  • The date of distribution.
  • The national copy of the Applications of the purchasing shares.

Actually, we can say that there are many aspects that have the right to be included in the contents of the prospectus to describe the company actual operations and the way of operation that company decides to go on.

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