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Question
Select the correct answer from the option given below and rewrite the sentence.
_______ is an invitation to the public to subscribe for the shares of the Company.
Options
Memorandum
Prospectus
Articles of Association
Advertisements
Solution
Prospectus is an invitation to the public to subscribe for the shares of the Company.
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RELATED QUESTIONS
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Document which states the limits within which a company has to operate.
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Prospectus attached with every share application form.
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Entrenched Articles cannot be easily altered.
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Complete the sentence.
The documents which state the aims and objectives of a company is called as_________
Complete the sentence.
The document which is subordinate to the Memorandum of Association is called _________
Complete the sentence.
The document issued by a company to invite investors to buy its securities is called as _________
Explain the following term/concept.
Name clause
Explain the following term/concept.
objective clause
Study the following case/situation and express your opinion:
A public limited company has issued all the shares mentioned in its Memorandum as Authorized Capital. Now the Company wants to make a public issue of 10,000 shares at face value of Rs 100 per share, to raise more funds for its expansion activities :
(a) Which clause of Memorandum needs to be altered?
(b) In which meeting the alteration can be approved?
(c) Which document should the company issue to invite the public to buy its shares?
Justify the following statement.
The doctrine of Indoor Management protects outsiders who are unaware of the correctness of internal proceedings of a company.
