Where any prospectus is published as a newspaper advertisement, it is not necessary to specify therein the contents of the memorandum or the signatories thereto, or the number of shares subscribed for by them (Sec. 66). It follows from the language of this Section that excepting these matters, all other particulars referred to earlier under the heading ‘Contents of a Prospectus’ must be given even in a newspaper advertisement.
This will be a very costly exercise indeed. With a view to facilitating wider publicity at reasonable cost and to ensuring that certain facts about the company must be made known even in newspaper advertisements regarding an issue of capital, the Department of Company Affairs has, therefore, laid down that such an advertisement must state at the top This is an announcement and not a prospectus and it must contain information about the company and proposed issue under the following-heads:
Contents of advertisements of prospectus :
1. Name of the Company.
2. Address of the Registered Office.
3. Existing and proposed activities.
4. Location of the industry.
5. Board of directors.
6. Manager/Managing Director^), if any.
7. (a) Authorized capital.
(b) Subscribed capital;
(c) Proposed issue to the public (whether at par, premium or discount).