Rule 7 - Variation in terms of contracts referred to in the prospectus or objects for which prospectus was issued

Companies Must Pass Special Resolution to Alter Prospectus Terms for Unutilized Funds; Details in Notice and Form PAS-1.

When a company raises funds from the public through a prospectus and has unutilized funds, it cannot alter the terms of contracts or objectives stated in the prospectus without passing a special resolution via postal ballot. The notice for this resolution must include details such as the original purpose of the issue, total funds raised, utilized funds, achievement level of objectives, unutilized funds, proposed variations, reasons, time limits, risk factors, and other necessary information. The resolution notice must be advertised using Form PAS-1 and published on the company's website, if available, alongside dispatching postal ballot notices to shareholders.