Company Law

A prospectus is issued by

• A private company

• A public company seeking investment from public

• A public enterprise

• A public company

Which of the following are not required to issue prospectus?

• Private company

• Incase of right issue

• Sweet equity issue

• All the above

............. prospectus were issued in case securities were issued in stages

• Deemed

• Shelf

• Red herring

• None of the above

Information memorandum 4 shelf prospectus together constitutes...........

• Memorandum

• Articles

• Prospectus

• None of the above

Prospectus is not issued in

• Public issue

• Private placement

• Right issue

• None of the above

A company issues prospectus within........of its registration

• 30 days

• 3 months

• 60 days

• 6 months

The prospectus is a............. document

The amount of minimum subscription may be learnt from______

• Prospectus

• memorandum of association

• articles of association

• records of general meetings

A shareholder purchased in the open market shares of a company whose prospectus contained some misstatements. He _______

• can rescind the contract only but cannot claim damages

• can claim damages only but cannot rescind the contract

• has no remedy against the company.

• has remedy against the directors responsible for the issue of the prospectus

A person cannot act as managing director of more than _______company

• One

• Two

• Four

• Five