ObjectiveTo Learn 1. The concept of Statement in Lieu of Prospectus 2. Certificate of business

Difference between prospectus and statement in lieu of

prospectus

On the Basis of Definition: Prospectus is define but no definition is made for statement in lieu of prospectus

On the Basis of Object: Prospectus is issued to invite the public and the object of statement on lieu of prospectus is to satisfy the register

On the Basis of Liability: In case of prospectus the director are personally responsible but in statement in lieu of prospectus they are not responsible

On the Basis of Form: No special form is prescribed in ordinance for prospectus but for statement in lieu of prospectus.

Definition: A document prepared by a public company in prescribed form when it does not want to issue a prospectus on its formation.Philosophy of issuance:

Capital subscription is privately arranged If the public response is poor to the prospectus issued

Scope of statement:That they can arrange or raise the required capital without assistance of public

Contents: As in prospectus

Incorrect statement: Companies’ ordinance is silent

Procedure:Must be signed by the director Present before registrar for registration Minimum subscription is achieved.on satisfaction of Registrar

Certificate of businessThe entire director paid to the company the value of their respective share.

Commencement of business

Subject: Company Law

Standard: LL.B second year

Topic: Statement in Lieu of Prospectus

MUNIR HUSSAIN KTK Lecturer UNIVERSITY LAW COLLEGE

QUETTA

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Lecture will be followed by Presentations.

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