Question

- Company cannot issued prospectus​

Answer 1

Answer:

Companies that are required to issue a prospectus

A private company is prohibited from inviting the public to subscribe to their shares and thus cannot issue a prospectus. However, a private company which has converted itself into a public company may issue a prospectus to offer shares to the public.

Answer 2

Companies that are required to issue a prospectus

A private company is prohibited from inviting the public to subscribe to their shares and thus cannot issue a prospectus. However, a private company which has converted itself into a public company may issue a prospectus to offer shares to the public.