Question

When there is a conversion of a private company into a public company ________ prospectus must be issued.

• A. deemed prospectus
• B. shelf prospectus
• C. statement in lieu of prospectus
• D. None of the above

Answer 1

Answer: (C)

statement in lieu of prospectus

Section 18 of the Companies Act, 2013 allows an existing Company to convert itself as a Company of other class by altering its memorandum and articles of association in the manner prescribed in Chapter II of the Companies Act 2013. Section 13 provides for alteration of Memorandum of Association whereas Section 14 provides for alteration of Articles of Association. After the conversion statement in lieu of the prospectus stating the details of the converted company ,must be issued.