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Question
State whether the following statement is True or False:
Actions can be taken against a company or its officers for misstatements in prospectus.
Options
True
False
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Solution
True
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RELATED QUESTIONS
Select the correct answer from the option given below and rewrite the sentence.
For making multiple issues of shares within a year, a company can prepare a ________ Prospectus.
Select the correct answer from the option given below and rewrite the sentence.
_______ is an incomplete prospectus.
Write a word or a term or a phrase which can substitute the following statement:
Document which states the limits within which a company has to operate.
Write a word or a term or a phrase which can substitute the following statement:
Document which establishes company’s relationship with outsiders.
Write a word or a term or a phrase which can substitute the following statement:
Document which contains rules and regulations for internal management.
Write a word or a term or a phrase which can substitute the following statement:
Document which establishes relationship between a company and its members.
State whether the following statement is True or False:
Memorandum of Association describes the nature and character of the company.
State whether the following statement is True or False:
Memorandum need not have a Liability Clause.
State whether the following statement is True or False:
Prospectus can be issued by a private company.
State whether the following statement is True or False:
Every company has to issue shelf prospectus every time it offers shares to the public.
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 _________
Select the correct option from the given options:
| Group A | Group B |
| Liability clause | ___________ |
Select the correct option from the given options:
| Group A | Group B |
| Incomplete prospectus | ___________ |
Arrange in proper order.
a) Subscription clause.
b) Name clause.
c) Object clause.
Explain the following term/concept.
Capital clauses
Study the following case/situation and express your opinion:
The Articles of a company stated that while borrowing any money from outsiders. The document must have the signatures of the Managing Director (MD) and any one of the directors. The Articles of Association clearly stated the procedure to be followed while borrowing money. The Managing Director did not follow all the procedures but still borrowed money from Mr. X. Mr. X assumed that the MD has followed the required procedures:
(a) Can the MD be held punishable for his act?
(b) Under which Doctrine can Mr. X take action against the company?
(c) Explain the Doctrine.
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?
