Why prospectus is issued

The prospectus must touch over the following content points:. According to the companies act , there are four types of the prospectus, abridged prospectus, deemed prospectus, red herring prospectus, and shelf prospectus.

Prospectus Definition The prospectus is a legal document for market participants and investors to pursue, detailing the features, prospects, and promise of a financial product. It is mandated by the law to be supplied to prospective customers. What is a Prospectus and its importance?

To notify the public of the issue To put the company on record with regards to the terms of the issue and allotment process To establish accountability on the part of the directors and promoters of the company Types of prospectus According to Companies Act , there are four types of prospectus.

Specify Occupation. I want to know more about the lawsikho courses Yes. Thank you for registering for the workshop. Do not forget to star that email, so it does not get misplaced. Reports by the auditors with respect to profits and losses and assets and liabilities of the company. Reports relating to profits and losses for each of the five financial years. Reports about the business or transaction to which the proceeds of the securities are to be applied.

Proceeds or any part of the proceeds, of the issue of the shares or debentures, are applied directly or indirectly in the purchase of any business, profits or losses of the business, assets, and liabilities of the business, in purchase or acquisition of any immovable property.

Acquisition by the company of shares in any other body corporate. Matters relating to terms and conditions of the term loans including re-scheduling, prepayment, penalty, default. The aggregate number of securities of the issuer company and its subsidiary companies purchased or sold by the promoter group and by the directors of the company.

In phase two the final prospectus will be registered when it complies with relevant legislation at a cost of R For the bank account details, click here.

Use your customer code as reference when depositing money into the CIPC bank account. Print and complete form CoR Scan and e-mail the completed and signed form, together with the prospectus to prospectus cipc. A hard copy of the prospectued must also be submitted. Important: Queries relating to transactions already lodged should only be submitted once the Service Turnaround Time has lapsed.

Also, the prospectus should be issued by the company or an institution on behalf of the company and made solely for the public. In case a private company wishes to convert to a public company, it is required to either issue a prospectus or file a statement in lieu of prospectus of which the provisions are mentioned under Section 70 of the Companies Act, Products IT.

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