Question

State the following statement is True or False:

Statement in-lieu-of prospectus is prepared for filing purpose only.

• 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.