English

State whether the following statement is True or False: Only public companies can issue Prospectus.

Advertisements
Advertisements

Question

State whether the following statement is True or False:

Only public companies can issue Prospectus.

Options

  • True

  • False

MCQ
True or False
Advertisements

Solution

True

shaalaa.com
Documents Related to Formation of a Company
  Is there an error in this question or solution?
Chapter 4: Documents related to formation of a company - Exercise Q.1 [Page 63]

APPEARS IN

Balbharati Secretarial Practice [English] 11 Standard Maharashtra State Board
Chapter 4 Documents related to formation of a company
Exercise Q.1 | Q 4.12 | Page 63

RELATED QUESTIONS

Select the correct answer from the option given below and rewrite the sentence.

Any act done by the company beyond the powers of Memorandum is called as _______.


Select the correct answer from the option given below and rewrite the sentence.

Articles establishes relationship between company and ________.


Write a word or a term or a phrase which can substitute the following statement:

Document which contains, Name Clause, Registered Office Clause, Capital Clause, etc.


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:

Term used for acts beyond the scope of Memorandum of Association.


State whether the following statement is True or False:

Memorandum establishes the relationship between the Company and Members.


State whether the following statement is True or False:

Any act done by the company beyond the powers of Memorandum is Ultra Vires.


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:

Letter of offer is issued at the time of Rights Issue.


Find the odd one.


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 _________


Select the correct option from the given options:

Group A Group B
Liability clause ___________

Arrange in proper order.

a) Subscription clause.
b) Name clause.
c) Object clause.


Explain the following term/concept.

Liability clauses


Study the following case/situation and express your opinion.

Mr. A entered into a contract with Star Limited company and as advance payment gave a cheque of ₹ 1 lac to a Director Mr. Sam. Mr. Sam is not the Managing Director. Articles state that only the MD is authorized to sign any contracts or receive any payments on behalf of the company.

  1. Did Mr. Sam have the authority to accept the cheque? Why?
  2. Can Mr. Sam’s action be called as Ultra Vires? Why?

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.


Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×