Answer-Under the Companies Act, 1956, a 'Prospectus' is:

Section 236 of the Companies Act, 1956, defines prospectus as any document described or issued as a prospectus and any other document by which the offer of any securities is made to the public for subscription or purchase. It must contain specified particulars under Sections 58-59 about the company, directors, auditors, financial history, and risk factors.

Question

Under the Companies Act, 1956, a "Prospectus"

is:

A A confidential memo circulated only among the promoters of a company

B A document inviting the public to subscribe to or purchase shares or debentures

C A final liquidation report submitted to the Court after a company is dissolved

D An internal ledger used for the daily recording of business transactions

E A formal roster containing the names and addresses of all board members

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Under the Companies Act, 1956, a "Prospectus"

Solution