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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. - Secretarial Practice

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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

MCQ
True or False
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Solution

False

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Documents Related to Formation of a Company
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Chapter 4: Documents related to formation of a company - Exercise Q.1 [Page 63]

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Balbharati Secretarial Practice [English] 11 Standard Maharashtra State Board
Chapter 4 Documents related to formation of a company
Exercise Q.1 | Q 4.13 | Page 63

RELATED QUESTIONS

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

Articles establishes relationship between company and ________.


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.


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 that can substitute the following statement:

The document is subordinate to the Memorandum of Association.


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

Last clause of Memorandum which contains name, signature, and other details of all the subscribers to the Memorandum.


State whether the following statement is True or False:

Memorandum of Association and Articles of Association is prepared at the time of incorporation of a company.


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:

Memorandum need not have a Liability Clause.


State whether the following statement is True or False:

Memorandum contains rules and regulations for the internal management of a company.


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:

Only public companies can issue Prospectus.


State whether the following statement is True or False:

Every company has to issue shelf prospectus every time it offers shares to the public.


State whether the following statement is True or False:

Red Herring prospectus does not contain details of the price at which shares will be sold by the company.


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
Incomplete prospectus ___________

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:

The object clause of Memorandum of a company stated the main object as the manufacturing of plastic chairs and tables and any other activity in furtherance of achievement of its main activity. The Board of Directors wants to now also produce TV. Serials and feels that the shareholders may give their permission.

a) Can the company with immediate effect start producing TV? Serials? Why?

b) How can the object clause of the company be altered?


Study the following case/situation and express your opinion:

A Company plans to offer Rights Issue.

a) Which document must it send to its shareholders for offering the Rights Issue?

b) Instead of Rights Issue, if the company wants to issue shares to the public, which document must it issue for inviting the public to subscribe for it?

c) Name the document which is called as incomplete prospectus.


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