Question

What is prospectus?Writes it's main objective

Answer 1

PROSPECTUS:-

 MEANING
                 THE 1ST STEP TO BE TAKEN BY THE PROMOTERS OF THE COMPANY, IMMEDAITELY AFTER THE REGISTRATION IS TO COLLECT SHARE CAPITAL. THE DIRECTORS, THEREFORE, PROCEED TO COLLECT CAPITAL BY ISSUING "PROSPECTUS" TO THE PUBLIC, IT IS A DOCUMENT WHICH GIVES ALL ESSENTIAL INFORMATION ABOUT EVERY ASPECT OF THE COMPANY. IT SHOWS FUTURE PROSPECTUS OF THE COMPANY. IT INVITES THE PUBLIC TO PURCHASE SHARE OR DEBENTURE OF THE COMPANY. IT MAT BE CALLED AS THE SILIENT SALESMAN OF THE COMPANY.
DEFINITION
SEC(2)(36) OF COMPANIES ACT 1956
"A PROSPECTUS MAENS ANY DOCUMENT DESCRIBED OR ISSUED AS A 'PROSPECTUS', AND INCLUDES ANY NOTICE OR CIRCULAR, ADVERTISEMENT OR OTHER DOCUMENT INVITING DEPOSITS FROM PUBLIC OR INVITING OFFER FROM THE PUBLIC FOR SUBSCRIPTION OR PURCHASE OF ANY SHARE OR DEBENTURE OF A BODY COPORATE.

OBJECTIVES
1] TO KNOW THE INVESTMENT STRATEGIES AND INVESTMENT OBJECTIVE OF THE COMPANY.
2] TO KNOW THE NATURE AND FUTURE PLANS OF THE COMPANY.
3] TO KNOW THE ASSETS AND LAIBILTY OF THE COMPANY.
4] TO KNOW THE INFORMATION ABOUT THE MANAGING DIRECTOR, DIRECTORS, PROMOTERS, BANKERS, BROKERS, SOLICITORS OF THE COMPANY.
5] TO KNOW ABOT THE MINIMUN SUBSRIPTION AMOUNT.
6] TO KNOW ABOUT THE PROCEDURE TO FILL AND TO FILE THE APPLICATION OF SHARE OR DEBENTURE APPLICATION.
7] TO KNOW THE RIGTHS OF DIRECTORS, SHAREHOLDER, DENTUREHOLDERS OF THE COMPANY.
8] TO KNOW THE CLASSES, FACE VALUE, AMONT PAYABLE OM APPLICATION AND ALLOTMENT OF SHARES.
9] TO KNOW WHERE THE COMPAUNY IS SITUATED AND  WHAT IS THE CAPITAL STRUCTURE OF THE COMPANY.