Prospectus: Contents, Under Companies Act, 2013

DEFINITION OF PROSPECTUS: (Companies Act, 2013)
First of all, let us know What is a prospectus, before going into the statutory definition.
As per dictionary definition Prospectus means – “A Prospectus is an offer document or information booklet issued by a public company used for inviting offers from the general public for subscribing of shares”.

According to the Companies Act 2013: – Prospectus is defined under section 2(70).

Prospectus can be defined as:

• any document described or published as a prospectus”
• It includes notices, circulars, advertisements, or any document acting as an invitation to offers from the public.

CONTENTS OF PROSPECTUS: (Companies Act, 2013):

• Registered company office address.
• Company secretary, auditors, bankers, underwriters, etc., their respective names and address.
• Opening and closing dates of the issue.
• Allotment letters and refunds declaration within the prescribed time.
• A statement by the board of directors about the separate bank account where all monies received out of shares issued are to be transferred. Underwriting of the issue their details.
• Directors, auditors, bankers Consent to the issue, expert’s opinion if any.
• The authority for the issue and the details of the resolution passed thereof.
• Procedure and time schedule for allotment and issue of securities.
• The Capital structure of the company with a comprehensive outlook.
• Main objects and location of the present business of the company.
• Public offer and terms of the present issue and its objective.
• Minimum subscription, amount payable by way of premium, issue of shares otherwise than on cash.
• Appointment and remuneration details of the director.
• Sources of promoter’s contribution.