Question

When publishing an advertisement for a prospectus of a company, which of the following requirements must be specified according to the Companies Act?

Q: Answer-When publishing an advertisement for a prospectus of a company, which of the following requirements...

Section 30. Advertisement of prospectus Where an advertisement of any prospectus of a company is published in any manner, it shall be necessary to specify therein the contents of its memorandum as regards the objects, the liability of members and the amount of share capital of the company, and the names of the signatories to the memorandum and the number of shares subscribed for by them, and its capital structure.

A The advertisement must include a summary of the company’s financial performance over the past three years, details of the board of directors, and the total amount of capital raised through previous issues

B The advertisement should specify the company’s memorandum contents regarding the objects, liability of members, share capital amount, names of the memorandum signatories, and the shares subscribed by them, but it can omit the capital structure

C The advertisement must disclose the contents of the memorandum related to the company's objects, the liability of members, share capital amount, names of the signatories to the memorandum, the number of shares they subscribed for, and the capital structure

D It is required to mention the company’s memorandum details, including its objects and capital structure, but not the liability of members or the names of signatories and their shares

E The advertisement must include details about the company’s financial projections and future investment plans, but it is not necessary to specify the contents of the memorandum or capital structure

Practice Next

When publishing an advertisement for a prospectus of a company, which of the following requirements must be specified according to the Companies Act?

Detailed Solution

More Financial Management Questions

Hey! Ask a query

Please Register/Login

RBI Grade B 2026 Phase 1 Memory Based Paper