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True/False Answer Question: Statement in lieu of prospectus can be filed by a public company going for a public issue.

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Question

True/False Answer Question:

Statement in lieu of prospectus can be filed by a public company going for a public issue.

Options

  • True

  • False

MCQ
True or False
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Solution

The statement is False.
A public limited company inviting applications from the general public to subscribe to its shares or debentures is mandatorily required to file a prospectus with the Registrar of Companies. However, if a company is confident that it can raise funds through private sources i.e. through friends, relatives, or some private arrangements as done by a private company, then it may file a statement in lieu of prospectus with the Registrar of Companies at least three days before making the allotment.

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Formation of a Company
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Chapter 7: Formation of a Company - True or False [Page 179]

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NCERT Business Studies [English] Class 11
Chapter 7 Formation of a Company
True or False | Q 2 | Page 179

RELATED QUESTIONS

Multiple Choice Question:

A prospectus is issued by


Select the correct answer from the options given below and rewrite the statement:
___________ are the persons who undertake the process of formation of a company.


Select the correct answer from the options given below and rewrite the statement:
A director must have a ________ to be appointed as a director of a company 


Match the pairs.

Group ‘A’ Group ‘B’
a) Minimum 7 members 1. Persons who conceive the idea of setting up a company.
b) DIN 2. Public company
c) Preliminary contracts 3. Promoters
d) Fiduciary duties towards the company. 4. Eight Digit alphanumeric number.
e) CIN 5. Private company
  6. Unique number assigned to each Director.
  7. ROC.
  8. A 21 digit alphanumeric code number.
  9. One-Person Company
  10. Contracts entered by Promoters with third parties.

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

Term which means registering a company as per provisions of Companies Act, 2013


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

Persons who undertake the necessary steps to set up a company.


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

Term which refers to contracts entered into by Promoters with third parties on behalf of the proposed company;


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

The Birth Certificate of a company.


State whether the following statement is True or False.

Promoters can make secret profits while setting up a company.


State whether the following statement is True or False.

In India, companies have to be incorporated as per the provisions of Companies Act, 2013.


State whether the following statement is True or False.

DSC is needed by Directors when they have to sign documents for e-filing.


State whether the following statement is True or False.

Every Director has to quote his DIN while giving his consent to be a Director of a company.


Find the odd one.


Complete the sentence.

The document issued by the Registrar of companies when a company is incorporated is called as _______.


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On incorporation of a company, the ROC allots a unique identity number called as ______. 


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Group A

Group B

___________

Certificate of incorporation


Select the correct option form the given option:

Group A

Group B

CIN

_______

Answer in brief.

State the contents of Certificate of Incorporation


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