Can You Explain Statement In Lieu Of Prospectus?

A statement in lieu of prospectus.According to the companies' ordinance if a public company is not issuing a prospectus on its formation, it then must file a statement in lieu of prospectus with the registrar of the companies. A statement n lieu of prospectus is defined as:

"A public document prepared in the second schedule of company's ordinance by every such public company which doesn't issue a prospectus on its formation with the registrar before allotment or shares of debentures, and signed y every person who is named therein."
A statement in lieu of prospectus gives practically the same information as a prospectus and is signed by all the directors or proposed directors. In case, the company has not filed a statement in lieu of prospectus with the registrar, it is then not allowed to allot any of its shares or debentures.

A statement in lieu of the prospectus contains the information as described below:-
1- Name of the company
2- Statement of capital
3- Description of the business
4- Names, addresses, and occupation of directors
5- Estimated initial expenses
6- Names of vendors and details of property
7- Material contracts
8- Director's interest
9- Minimum subscription

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