Question

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.

• A. True
• B. False

Answer 1

The correct option is A True

The Statement in Lieu of Prospectus is a document filed with the Registrar of the Companies (ROC) when the company has not issued prospectus to the public for inviting them to subscribe for shares. The statement must contain the signatures of all the directors or their agents authorised in writing. It is similar to a prospectus but contains brief information.