MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Business Studies

Types of Partners , Partnership and Companies

Is it essenti...

Question

Is it essential for a private company to issue a prospectus or a statement in lieu of prospectus? Why or why not?

Open in App

Solution

No, it is not essential for a private company to issue a prospectus or a statement in lieu of prospectus as it does not offer shares to the general public for subscription.

Suggest Corrections

thumbs-up

4

Similar questions

Q. Mark the following statements True or False:
(a) A private company must file a statement in lieu of prospectus.
(b) A company which does not want to prepare its own Articles of Association can adopt Table A.
(c) A company wanting to raise capital must issue a prospectus.
(d) A private company can start its business immediately after incorporation.
(e) Capital clause is a part of the Articles of Association.
(f) The Memorandum of Association defines the relationship of a company with or outsiders.
(g) Every company must issue a prospectus to raise share capital.

Q. Is it compulsory for a Private Ltd. Company to issue prospectus?

A private company does not issue prospectus.

Statement in lieu of prospectus can be filed by a public company going for a public issue.

State the following statement is True or False:

A statement filed with the Registrar of Companies, instead of prospectus is the statement-in-lieu of prospectus.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Types of Partners , Partnership and Companies

BUSINESS STUDIES

Watch in App

explore_more_icon

Explore more

Types of Partners , Partnership and Companies

Standard XI Business Studies

Join BYJU'S Learning Program

CrossIcon