1. Introduction : Prospectus is a public document. It includes all the necessary information which is useful to the investors. If directors hide any information or provide misleading information about the company in the prospectus then they are held legally responsible for it.
2. Matters to be stated in the Prospectus : As per the provisions of the Companies Act 2013, the following matters are to be included in the Prospectus:
[1] Name : Name of the company
[21 Address : Address of Registered office with the name of city, state and country.
[3] Name and address of main officers : Name and address of company secretary, chief financial officer, Auditor, Legal Advisor, Banker, Trustee, Guarantor, Broker and other specified persons.
[4] Information related to subscription : The dates of opening and closure of the subscription, Allotment of securities and Time limit for payment of money.
[5] Statement of promoter regarding bank : Statement of promoters to the effect that the company will open a separate account in a Bank and the entire fund would be kept in it.
[6] Underwriting contract : All information of under writers-their name, address, Amount of guarantees, Amount payable as underwriting commission etc.
[7] Consent of officers: Consent of the promoters, Auditors, specific Bankers, Experts and all other concerned officers.
[8] Resolution of Subscription: Information about he aüthoiized officer, regarding subscription and the resolution regarding it.
[9] Process of distribution of securities : The schedule about the process of distribution regarding securities.
[10] Capital structure : Capital structure decided by the directors of the company showing different securities as per the Companies Act.
[11] Purpose and conditions of subscription : The purpose of public subscription, conditions and relevant matters.
[12] Object of a company and its present business : The main object of a company and its present business, the place of business and the schedule of implementation of its project.
[13] Regarding project : Following informations are mentioned regarding project.
(i) The idea of promoters and risk factors in it.
(ii) Waiting period for the project.
(iii) Development in the project.
(iv) Time for completion of the project.
[14] Pending suit against promoters : Information regarding and pending suit, Legal proceeding or filing of a suit or legal proceeding against a promoter by Government Department during, past 5 years from the date of Publication of the prospectus.
[15] About Minimum Subscription: Information about the Minimum Subscription, information regarding the amount to be paid as premium, information about issuing any share except cash.
[16] Information about Board of Directors : Information about the Board of Directors, their appointment, remuneration and the details about their interest in the company if any.
[17] Contribution of promoters : Information about the economic and non-economic contribution given by promoters.
[18] Additional information of companies having business in existence : Following are the information:
(a) Profit-Loss statement of the company, Final Balance-sheet, report of auditor regarding it.
(b) Profit-Loss information of past five years before publication of prospectus, Reports of Ancillary Branch
(c) Information regarding the business in which direct or indirect use of obtained securities is to be utilized.
[19] Statement of compliance with loss : Statement to the effect that the contents of the prospectus are not violating the Companies Act 2013, Securities Contract Act 1956 or the SEBI Act 1992.
[20] Date of Publication of Prospectus : The d written in the prospectus will be considered as the date of publication of the prospectus.