A prospectus means any document describe or issue as a prospectus and includes any notice, circular, advertisement or other documents inviting deposits from the public or inviting offers from the public for the subscription or purchase of shares in or debentures of a day corporate. The main contents of a prospectus are:
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I. Main object of the company with the names, addresses, description and occupation of signatories to the memorandum and the number of shares subscribed for by them.
II. Number and classes of shares and the nature and extent of the interest of holders thereof in the property and profits of the company.
III. The number of redeemable preference shares intended to be issued and the date of redemption or where no date is fixed; the period of notice required for redeeming the share s and proposed method of redemption.
IV. The number of shares. if any, fixed by the Article as the qualification of a director and the remuneration of the directors for the service.
V. The names, occupation and addresses of directors, managing director and manager together with any provision in the Articles or a contract regarding their appointment remuneration or compensation for loss of office.
VI. The time of opening of the subscription list should be given in the prospectus.
VII. The amount payable on application and allotment on each share should be stated. If any prospectus is issued within two years, the details of the shares subscribed for any allotted.
VIII. The particular about any option or preferential right to be given to any person to subscribe for shares or debentures of the company.
IX. The number of shares or debentures which within the two preceding year been issued for a considerations other than cash.
X. Particulars about premium received on shares within two preceding years or to be received.
XI. The amount or rate of underwriting commission.
XII. Preliminary expenses.
XIII. The names and addresses of auditors, if any, of the company.
XIV. Where the shares are of more than one class, the rights of voting and rights as to capital and dividend attached to several classes of shares.
XV. If nay reserve or profits of the company have been capitalized, particulars of capitalizations and particulars of the surplus arising from any revaluation of the assets of the company.
XVI. A reasonable time and place at which copies of all accounts on which the report of auditors is based may be inspected.