PROSPECTUS:

CONTENTS AND LIABILITY

FOR MISREPRESENTATION
 PROSPECTUS
• Section 2(70) of The Companies Act, 2013.

MEANING • Any notice, circular, advertisement or any other document acting as an

invitation to offers from the public.
• Only public companies can issue a ‘prospectus’.

• To help investors make informed decisions.

IMPORTANCE • To secure that the directors of the company accept responsibility for the
statements in the prospectus.

• Filing with the Registrar of Company.

PUBLICATION • Section 30 of the Act – regarding publication.
• Minimum subscription.
 TYPES OF PROSPECTUS
RED • Issue of one or more
HERRING • Preliminary prospectus
PROSPECTU • Excludes key details of the issue, securities or class of
S such as price and number of shares securities
offered. • Section 31 of the Act

RED

TYPES
DEEMED SHELF SHELF
PROSPECTU HERRING
PROSPECTU
S S

DEEMED ABRIDGED

• Agreement with a third party for

ABRIDGED • Contains all
issuing of shares.
PROSPECTU
• Section 25(1) of the Act information of a
S prospectus in brief.
• Section 33(1) of the
Act
CONTENTS OF A PROSPECTUS
Information
about number
and kind of
shares

Information
Other
about voting
information
rights

Main object and

other info. About
the company

Information
about Reports by
reserves/profits/ auditors
surplus

Variation in
terms of
prospectus
 LIABILITY FOR MISREPRESENTATION
Misstatement may occur when a statement which is untrue or misleading in form or context is
included in the prospectus. Also, any inclusion or omission of any matter which is likely to mislead
will also be considered as a misstatement.

Civil
Liability
Criminal
Liability
Defenses
Section 35 of Section 34 of
True Statement
the Act the act
Good
Statement by an expert
Faith
Considered as
Compensation Fraud u/s 447 Without
Immaterial Withdrawal of
of the ACt knowledge and
statement consent
consent
 THANK
YOU
PRESENTED BY:
NAME: TARUN PRATAP SINGH
ROLL MO. 18175
GROUP NO. 29