Prohibition on allotment without statement in lieu of prospectus: delivery, director signatures and criminal penalties apply. A company with share capital that has not issued (or issued but not proceeded to allot) a prospectus must not allot shares or debentures unless a statement in lieu of prospectus, in the form and particulars of Schedule III and signed by each director or proposed director (or authorised agent), is delivered to the Registrar at least three days before the first allotment. Private companies are excluded. Contravention attracts fines for the company and wilful directors; filing an untrue or misleading statement exposes the authoriser to criminal liability unless immateriality or reasonable belief in truth is proved.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Prohibition on allotment without statement in lieu of prospectus: delivery, director signatures and criminal penalties apply.
A company with share capital that has not issued (or issued but not proceeded to allot) a prospectus must not allot shares or debentures unless a statement in lieu of prospectus, in the form and particulars of Schedule III and signed by each director or proposed director (or authorised agent), is delivered to the Registrar at least three days before the first allotment. Private companies are excluded. Contravention attracts fines for the company and wilful directors; filing an untrue or misleading statement exposes the authoriser to criminal liability unless immateriality or reasonable belief in truth is proved.
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