Offer of sale of shares treated as prospectus, triggering statutory disclosure and liability while company acts for authorised selling members. Members may, in consultation with the board, offer part of their shareholding to the public following prescribed procedure; the document effecting the offer is deemed a prospectus for all legal purposes and attracts statutory content and liability rules for misstatements and omissions. Selling members must collectively authorise the company to act on their behalf for the offer and reimburse the company for expenses incurred.
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.
Offer of sale of shares treated as prospectus, triggering statutory disclosure and liability while company acts for authorised selling members.
Members may, in consultation with the board, offer part of their shareholding to the public following prescribed procedure; the document effecting the offer is deemed a prospectus for all legal purposes and attracts statutory content and liability rules for misstatements and omissions. Selling members must collectively authorise the company to act on their behalf for the offer and reimburse the company for expenses incurred.
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