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?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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