Question

A Company stated in its prospectus that it has been making profits since the last 5 years, However, Mr. X. an investor found out that two years back the company had not made any profit. The prospectus was filed with the ROC on 1 st Jan, 2017 and was issued to the public on 10 th Feb 2018

a) Can Mr.X state that there was a misstatement in the prospectus?

b) If found guilty which two types of liability will the company and its officers face?

c) Can the prospectus be valid for issue to the public on 10th Feb 2018,​

Answer 1

Answer:

what you want to say please explain

Answer 2

Answer:

१) mr. x can state that there was a misstatement in the prospectus .