1. Contents of prospectus or
statement in lieu of prospectus
Prepared By:
Usman-ud-Din
AD 513464

2. For obtaining certificate to
commence business : -
• A prospectus of a statement in lieu of
prospectus
• Share should be allotted within 180
days
• A declaration should be filed with the
registrar

3. Definition: -
• Any document described or issued as
prospectus, and includes any notice, circular,
advertisement, or other communication,
inviting offers from the public for the
subscription or purchase of any shares in, or
debentures of, a body corporate, or inviting
deposits from the public, other than
deposits invited by a banking company or a
financial institution approved by the federal
government, whether described as
prospectus or otherwise.

4. In short : -
• Prospectus is an invitation to the
public to become shareholders or to
take up debentures. It describes the
soundness of the business which the
company proposes to undertake and
broad idea about its profitability.

5. Matters to be specified in
prospectus (Continue) : -
• The contents of memorandum
• No. & value of shares
• Remuneration of directors
• Details regarding director, CEO, Managing
Agent and sectary
• Details in respect of shares offered to
the public for subscription

6. Matters to be specified in
prospectus (Continue) : -
• Date and time of opening and closing of
the subscription list.
• Amount payable on application and
allotment of shares.
• Details regarding material contracts.
• Details regarding debenture.
• Amount of premium or discount on shares
and so on.

7. Conclusion: -
Prospectus is a mandatory document for
limited organization to commence
their business, but its complicated
procedure delays the operation of
any business, therefore a no. of
organizations hesitate to issue
Prospectus to general public for
subscription of share capital &
Debenture.