The amount of minimum subscription must be stated in the _________________.

Memorandum

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Articles

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Prospectus

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Statement-in-lieu of prospectus

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Solution

The correct option is C Prospectus
The amount of minimum subscription must be stated in the prospectus. As per guidelines of the Securities Exchange Board of India (SEBI), a company making any public issue of shares, debentures, etc. must receive at least 90% of Minimum Subscription before making allotment of shares or debentures to the public.

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

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

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