What Do You Know About The Statement In Lieu Of Prospectus?

A public limited company is allowed to invite public for subscription, and for the shares of the company, they also invite the general public to invite the debentures and other kind of investments. But even a public limited company need not necessarily go to public for money. The promoters may raise the necessary capital through private source. In such a case there is no need of issuing prospectus to the public. The promoters are required to prepare a document called statement in lieu prospectus and file the same with the registrar.

Content:

Following are the main content of statement in lieu of prospectus.

• Name of the company.
• The authorized capital and its division into shares.
• Nature of business and objectives.
• Name, address and occupations of

1. Directors or proposed Chief Executive
2. Chief Executive or proposed Chief Executive
3. Managing agents or proposed managing agents, if any.
4. Secretary or proposed secretary
5. Auditors
6. Legal Advisor

• Any provision regarding the appointment and remuneration payable to above mentioned persons.
• Estimated amount of preliminary expenses.
• Details about the company contracts
• Amount of minimum subscription
• Signature of directors or proposed directors or their agents authorized in writing.