Question

Statement in lieu of prospectus is required
to be issued by :
(A) All companies which issue shares
and debentures
(B) Public companies when shares are
issued among friends and relatives
(C) Private companies as they do not
issue to the public
(D) All of the above​

Answer 1

Answer:

The Statement in Lieu of Prospectus is a document filed with the Registrar of the Companies ( ROC ) when the company has not issued prospectus to the public for inviting them to subscribe for shares. The statement must contain the signatures of all the directors or their agents authorized in writing. It is similar to a prospectus but contains brief information. The Statement in Lieu of Prospectus needs to be filed with the registrar if the company does not issues prospectus or the company issued prospectus but because minimum subscription has not been received the company has not proceeded for the allotment of shares.