RED HERRING

Pawan Kumar Ray

• ANY COMPANY PROPASING TO MAKE AN
OFFER MAY ISSUE RED HERRING PRASPECTUS
PRIOR OF ISSUE OF PROSPECTUS.
• A COMPANY PROPASING A RED HERRING TO
SUBSCRIPTION I SHALL FILLED WITH IN THE
REGISTRAR AT LEAST 3 DAYS. PRIOR OF
OPENING OF SUBSCRIPTION LIST AND OFFER.
 PROSPECTUS
• IN ORDER TO FINANCE COMPANIES ACTIVITIES A COMPANY NEEDS
COMPANY WHICH IS RAISED BY A PUBLIC COMPANY ANY BY THE ISSUE
OF PROSPECTUS INVITING DEPOSITS OR OFFER OF SHARES AND
DEBENTURES FROM THE PUBLIC. A PRIVATE COMPANY IS PROHIBITED
FROM MAKING ANY INVITATION TO THE PUBLIC TO SUBSCRIBE FOR ANY
SHARES IN OR DEBENTURES OF THE COMPANY. HENCE IT NEED NOT
ISSUE OF PROSPECTUS SECTION 2 (17)OF THE COMPANY ACT . 2013
DEFINES PROSPECTUS AS ANY DOCUMENT DESCRIBED OR ISSUED AS A
PROSPECTUS AND INCLUDES A RED HEERING PROSPECTUS REFFERED
TO IN SECTION 32 OR SHELF PROSPECTUS REFERED TO SECTION 3 OR
ANY NOTICE CIRCULAR ADVERTISEMENT OR OTHER DOCUMENTS
INVITING OFFER FROM THE PUBLIC FOR THE SUBSCRIPTION OF THE
BODY CORPORATE.
RED HERRING PRASPECTUS
1. A COMPANY PROPASING TO MAKE AN OFFER OF
SECURITIES MAY ISSUE A RED HERRING
PRASPECTUS PRIOR TO ISSUE PROSPECTUS
(SECTION 32).
2. A COMPANY PROPASING TO ISSUE A RED
HERRING PRASPECTUS UNDER SUB SECTION 1
SHALL FILLED WRITING THE REGISTER AT
LEAST 3 DAYS PRIOR OF OPENING OF
SUBSCRIPTION LIST AND OFFER.
3. A RED HERRING PRASPECTUS SHALL CARRY THE
SAME OBLIGATION AS ARE APPLICATION TO A
PROSPECTUS SHALL BE HIGHLIGHTED AS
VARIATION IN A PROSPECTUS
4. UPON THE CLOSING OF THE OFFER OF
SECURITIES UNDER THIS SECTION THE
PROSPECTUS STARTING THERE IN TOTAL COMPANY
RAISE WEATHER THE WAY OF DEBTOR OR SHARE
COMPANY AND THE CLOSING PRICE OF
SECURITIES AND ANY OTHER DETAILS ARE NOT
1. NAME OF THE COMPANY
2. SUBJECT OF THE COMPANY.
3. FUNCTION OF THE COMPANY.
4. NAME OF DIRECTORS.
5. NAME OF BRANCH.
6. QUALIFICATION OF COMPANY RIGHTS,
LIABILITIES OF DIRECTORS.
 CAPITAL AND FINANCE OF COMPANY

• COMPANY BY VARIOUS WAY OF ACCUMULATED ITS COMPANY WITHOUT COMPANY. IT CANNOT

BE REACH FROM THE VERY POINT OF ESTABLISHMENT AND SMOOTH RUNNING COMPANY IS
MUCH.
• THE SOURCE OF COMPANY ARE AS FOLLOWS :-

1. ISSUE OF SHARES.
2. ISSUE OF DEBENTURES.
3. MUTUAL FUND SCHEMES.
4. BORROWED COMPANY.
5. OWNED COMPANY.
 SHARE AND SHARE
COMPANY
• THE SHARE COMPANY IS THE LIFE BLOOD FOR RUNNING
THE AFFAIRS OF COMPANY.
• THE TERM OF COMPANY HAS A VARIETY OF MEANING IN
RELATION TO COMPANY LIMITED BY SHARES THE WORD
COMPANY MEANS SHARE COMPANY THAT IS THE
COMPANY FIGURES IN TERMS OF MANY RUPEES
DIVIDEND INTO SHARES OF FIXED AMOUNT.
NOMINAL OR AUTHORISED OR REGISTERED
COMPANY SECTION 2(8)
1. IT IS THE SUM STATED IN THE MEMORANDUM AS
COMPANY OF THE COMPANY WITH WHICH IT IS TO BE
REGISTERED BEEN THE MAXIMUM AMOUNT WHICH IS
AUTHORISED TO RAISED BY ISSUING SHARES.
2. ISSUED COMPANY.
3. SUBSRILED COMPANY
4. CALLED UP COMPANY [SECTION 2(15)]
5. PAID UP CAPITAL.
6. RESERVE CAPITAL