Professional Documents
Culture Documents
AOa
AOa
1) Articles of Association of a company contain the rules and Regulations relating to the Management of its internal Affairs. 2) It defines the rights, powers and duties of the Management. 3) It must not contain anything which is against the memorandum of association or against the companies Act or Public policy. 4) A public company limited by shares may Register its own Articles of Association or it may adopt Table A . 5) A company limited by Guarantee with out having share capital may file its own Articles or may adopt Table C. 6) The Articles of Association must be printed, divided into paragraphs, numbered consecutively and signed by each signatory to the MOA in the presence of at least one attesting witness.
Relations defined
ratified
Prospectus
A prospectus is thus any document which invites the public to provide funds to the company bye law of deposits or subscriptions to its shares and debentures. It is a valuable document containing important details about a company It should be duly signed by the company.
Important s of Prospectus
It is an invitation to the public to subscribe to the shares and debentures of the company. It informs public about the company and stimulates people to invest money in the company. It provides an authentic record of the terms and conditions on which shares and debentures have been issued. It identifies the persons who can be held responsible for any untrue or incorrect statements made in it. It reflects the business policies and programmes of the company. It helps the investors to take investment decisions.
Types of prospectus
Shelf prospectus: It is a prospectus issued by public financial institutions like public sector bank and scheduled bank Red -herring Prospectus: It means a prospectus which does not contain full particulars on price of the securities offered and their number. It is issued by companies which raise capital through the book building process.
Minimum subscription
Minimum amt of money from the proposed issue of shares If the minimum subscription is not received within 120 days of the issue of prospectus, the amt received on applications must be refunded to the applicants within 10 days.
Property acquired
Past history
The amt paid or proposed to be paid for goodwill and other properties should be carefully scrutinized.
Investor checked history of companies especially existing business liability & assets.
Material contracts
Business associates& restrictions