CORPORATE

LAW
CLASS ACTIVITY

SUBMITTED BY:
HAMZA IHSAN SP17-BBA-007

SUBMITTED TO:

MAM HINA ZAHOOR

TUESDAY, MAY 4, 2021

Contents
Prospectus defined:...................................................................................................................................3
Contents of a prospectus:..........................................................................................................................3
Legal requirements for issuing of a prospectus:.....................................................................................3
Prospectus defined:
The Companies Act 2013 defines Prospectus of a Company as any document issued as a
prospectus. It includes Shelf, Red Herring or any other document inviting offers from public for
subscription of securities of the Company.

Contents of a prospectus:
Following are the contents of a prospectus:

 Name of the Company

 Registered Address of Company
 Objects of the Company
 Purpose of the issue
 Nature of Business
 Capital structure of Company
 Name and address of Signatories and no of shares subscribed by them
 Qualification shares of the Directors
 Particulars of Debentures and redeemable preference shares
 Remuneration of Directors and Promoters
 Minimum Subscription for allotment
 Date of opening and closing of issue
 Details of Underwriter
 Underwriting Commission and Brokerage
 Name and address of Auditor, Company Secretary, Banker and Trustee of Company
 Particulars of material documents
 Expected rate of dividend and voting rights

Legal requirements for issuing of a prospectus:

There are some requirements that a company has to comply with before issuing it. Those are: -

 There should be disclosure of material matters.

 Moreover, it must be dated.

 Company must file a duly signed copy of it to ROC for its registration.

 Furthermore, Company shall file it with various agencies such as SEBI, Stock exchanges
and other agencies.

 SEBI examines the draft of Prospectus to ensure disclosures and compliances.