Question

'Table A' acts as a silent salesman of the company.

• A. True
• B. False

Answer 1

The correct option is B False

(i) Table 'A' is a model set of articles given by the Companies Act, 1956.

(ii) If a public limited company does not prepare its own Memorandum of Association at the time of incorporation, it can adopt 'Table A' of the Companies Act.

(iii) Prospectus, on the other hand is a written invitation to the public to subscribe to the share capital of the company.

(iv) It gives all material information about.the company.

(v) It aims at inviting investors towards company for investment in company's securities i.e. shares and debentures.

(vi) It is must for every public company to prepare its prospectus.

(vii) It is through the prospectus that the prospective investors know details of shares, offere by the company.

(iii) All detailed information about company like business, management, financial structure, etc. are provided in the prospectus.

(ix) It does all the activities like general salesman, so it is the prospectus who act as a silent salesman and not 'Table A'.