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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
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Document which states the limits within which a company has to operate.
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Complete the sentence.
Any act done by the company which goes beyond the powers of Memorandum of Association will be calledas _________
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 |
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Select the correct option from the given options:
| Group A | Group B |
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Explain the following term/concept.
Capital clauses
Study the following case/situation and express your opinion:
A company stated in its prospectus that it has been making profits since the last 5 years. However, Mr. X. an investor found out that two years back the company had not made any profit. The prospectus was filed with the ROC on 1 st Jan 2017 and was issued to the public on 10th Feb 2018.
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Distinguish between the following:
Memorandum of association and articles of association.
