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Question
State whether the following statement is True or False:
Prospectus must be issued within 1 year from the date of tiling it with the ROC.
Options
True
False
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Solution
False
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RELATED QUESTIONS
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Memorandum of Association and Articles of Association is prepared at the time of incorporation of a company.
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Any act done by the company beyond the powers of Memorandum is Ultra Vires.
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Explain the following term/concept.
objective clause
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.
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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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b) If found guilty which two types of liability will the company and its officers face?
c) Can the prospectus be valid for issue to the public on 10th Feb 2018?
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The doctrine of Indoor Management protects outsiders who are unaware of the correctness of internal proceedings of a company.
