New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    As per section 25 of the Companies Act what constitutes

    evidence that an allotment of securities was made with a view to the securities being offered for sale to the public?
    A If an offer is made within three months after the allotment or agreement to allot. Correct Answer Incorrect Answer
    B If an offer is made within six months after the allotment or agreement to allot. Correct Answer Incorrect Answer
    C If the whole consideration is received by the company before the offer is made. Correct Answer Incorrect Answer
    D Both a & c Correct Answer Incorrect Answer
    E Both b & c Correct Answer Incorrect Answer

    Solution

    Companies Act Section 25. Document containing offer of securities for sale to be deemed prospectus: (2) For the purposes of this Act, it shall, unless the contrary is proved, be evidence that an allotment of, or an agreement to allot, securities was made with a view to the securities being offered for sale to the public if it is shown — (a) that an offer of the securities or of any of them for sale to the public was made within six months after the allotment or agreement to allot; or (b) that at the date when the offer was made, the whole consideration to be received by the company in respect of the securities had not been received by it.

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