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

Practice Next

More Other Laws and Acts Questions

Who is the first Indian brand ambassador for Dreame Technology?
When was the first Lok Sabha constituted?
“Vishwa Ved Sammelan” or World Conference of Vedas was inaugurated in
How many private FM radio channels will be established in 234 cities as per the recent Union Cabinet approval?
Which of the following metals have the maximum electrical resistivity?
________________ is situated at the confluence of Lastar River and Mandakini River.
Rourkela Steel Plant is developed by the assistance of
IRDAI was established on -
Three statements are followed by four conclusions numbered I, II, III, and IV. You have to consider these statements to be true, even if they seem at va...
Jhum Cultivation is mainly followed in which of the states?

Under the Companies Act, 1956, a "Prospectus"

Solution