Understanding Prospectus Types Under Companies Act, 2013
The Companies Act, 2013, defines various types of prospectuses that companies can issue when offering securities to the public. Identifying these types is crucial for compliance.
Recognized Prospectus Types
- Shelf Prospectus: As per Section 31, this allows a company to issue multiple securities over a period without filing a fresh prospectus each time, provided it meets certain conditions.
- Deemed Prospectus: Section 25 addresses situations where shares are allotted for consideration other than cash, such as to contractors. The statement filed in such cases is treated as a prospectus.
- Abridged Prospectus: Mandated by Section 33, this is a shorter, summarized version of the main prospectus that must accompany the full document when offering securities.
Identifying the Non-Type Prospectus
The question asks to identify which option is not a type of prospectus under the Companies Act, 2013. While "Yellow (Herring) Prospectus" might refer to a preliminary or informational document in some contexts, the Companies Act, 2013, specifically defines and regulates the Red Herring Prospectus under Section 32. This document is issued before the final prospectus and lacks complete details on the price or quantity of securities. Since "Yellow (Herring) Prospectus" is not the terminology used or defined within the Act, it is considered the incorrect option among the choices provided.
Important Questions from Company law
Arrange the following as per sections of the Companies Act, 2013 in descending order :
A. Execution of Bills of Exchange, etc.
B. Punishment in case of repeated default
C. Annual reports on Government Companies
D. Petition for winding up
E. Functions of Company Secretary
Choose the correct answer from the options given below:
Match List I with List - II.
List - I
List - II
(A)
Producer companies
(I)
Do not necessarily require Memorandum of Association
(B)
Statutory companies
(II)
Association not for profit
(C)
Section 8 company
(III)
Formed to convert cooperative into a company
(D)
Small company
(IV)
Paid up share capital is between 50 lakh-5 crore and turnover is between 2 crore - 20 crore
Choose the correct answer from the options given below:
Red herring prospectus is a prospectus issued:
- The problem of double taxation in international transactions can be reduced by:
i. Market agreement
ii. Multilateral agreement
iii. Bilateral agreement.
iv. Trade agreement - Given below are two statements: one is labelled as Assertion A and the other is labelled as Reason R
Assertion A: Every company having net worth of rupees five hundred crores or more or turnover of rupees one thousand crore or more or a net profit of rupees five crore or more during the immediately preceding financial year shall constitute a Corporate Social Responsibility Committee (CSRC).
Reason R: The CSR Committee monitors CSR policy of the company.
In the light of the above statements, choose the most appropriate answer from the options given below
