Prospectus Advertisement in newspapers - Suggested proforma

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....and the reports set out and specified respectively in Part I and Part II of Schedule II to the Act, read with Part III of that Schedule. Section 66 further provides that where any prospectus is published as a newspaper advertisement, it shall not be necessary in the advertisement to specify the contents of the memorandum of association or the signatories thereto, or the number of shares subscribed....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ding the issue of prospectus. It is not a prospectus" •  "Announcement not being a prospectus or an invitation to the public to subscribe" The announcements of the nature referred to above amount, in effect, to publication of prospectuses in an abridged form and such practice may be said to offend the provisions of section 56, with the consequent liability to penalties under t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Government should prescribe a suitable form in which company promoters and managements may make announcement of their intention to issue a prospectus. In support of this suggestion, it has been pointed out that in the UK and the USA only a bare announcement of the proposal of a company to issue its prospectus is published in newspapers, and prospective investors are expected to contact the broker....