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Contents of prospectus

OR Statement in lieu of
prospectus
Presented by:
uUNSA ARSHAD
Prospectus
Prospectus is an invitation issued to the
public to offer for purchase/subscribe shares
or debentures of the company. In other
words, any advertisement offering shares or
debentures of the company for sale to the
public is a prospectus. A company secures
capital by the issue of prospectus inviting
deposits or offers for shares and debentures
from the public.
Contents of Prospectus;
Memorandum
Description of business
Directors remuneration
Names of management
Application money
Payment to Promoters
Auditors Report
Interest in Capital
Interest In Subsidiaries
Statement In Lieu Of Prospectus
If the promoters of a public company hope to get the subscription
of capital from their own limited circle there is prospectus to the
public. The promoters shall have to file a statement in lieu of
prospectus.
According to section 53 of the companys ordinance. If a public
company is not issuing a prospectus on its formation. It then must
file a statement in lieu of Prospectus with the Registrar of the
companies.
INTRDUCTION:
Al-Khair Suger Mills I
AL=Khair Sugar Mills Limited is a public limited company
incorporated in Pakistan under the Companies Ordinance,
1984. Its shares are quoted on Pakistan Stock Exchange
Limited.Al-Khair sugar Mills Limited is principally engaged
in the manufacture and sale of sugar mills. Al-Khair sugar
Mills Limited was incorporated on 5th of May 1986, as a
public limited company. The Company went into commercial
production in January 1988.
Promotion:
The promoters do the basic work f or
starting a business weather it is industrial
or commercial basis. The promoters
prepare certain documents and comply
with the rules stated in the company
ordinance 1984.The document are filed
with the provinces registrar.
Incorporation stage
The second step for establishment of Al-Khair Suger mills is to get
registration.
NAME,
DOCUMENT.
CERTIFCATE.
FEES.
ADRESS
Subscription stage

A private company can commence


business on receipt of certificate of
incorporation however a public company has
to fulfill another requirement of subscription
to obtain the certificate of commencement of
business. The subscription stage is connected
to following steps.
A prospectus has been issued inviting the public
to subscribe for the shares. A copy of
prospectus is submitted to the registrar.
Where no prospectus has been issued, a statement in
lieu of prospectus has been filed with the registrar.
Formation of Al-Khair Suger Mills (Public)
The formation of company is possible under four
stages that are under as;
Promotion
Incorporation
Subscription
Commencement of business
Legal documents for formation of
Al-Khair Suger mills
There are three legal documents for
formation of Public limited company that
are;
Memorandum of Association(MOA)
Article of Association(AOA)
Prospectus
memorandum of Association
The memorandum of Association
is a document which regulates a companys
external activities and constitution and
which must be drawn up at the formation of
a companyname,sitution,object,liability
,capital

article of association
The articles of association are documents that govern
the running a company. Its sets out voting rights meetings, power
of the management to the article of association are the bye-laws of
a company
4. Under what conditions did the member of the public
accept the prospectus?
Golden rule in prospectus

Prospectus is the basis of the contract between the


company and the persons who unlawful carnal
knowledge in the sugar mills s shares or debentures. The
officers of the sugar mills have knowledge of the
companys present status and its prospects in future or
have the means to acquire such knowledge.
Legal requirement regarding issue of Prospectus

The Companies Act has defined some legal requirements


about the issue and registration of a prospectus. The issue of
the prospectus would be deemed to be legal only if the
requirements are met.

1. Issue after the incorporation: As a rule, the prospectus of


a company can only be issued after its incorporation. A
prospectus issued by, or on behalf of a company, or in relation
to an intended sugar mills, shall be dated, and that date shall
be taken as the date of publication of the prospectus.

2.
Conclusion

A public company raises its capital from the public


and it issues prospectus for this purpose. Sometimes,
the promoters of a company decide not to approach
the public for raising necessary capital. They are
hopeful of raising funds from the friends and
relations or through underwriters. In that case a
prospectus need not be issued but a Statement in
Lieu of Prospectus must be filed with the registrar at
least three days before the first allotment of shares.
Such a statement must be signed by every person
who is named therein as a director or proposed
director of the company. This statement will be
drafted strictly in accordance with the particulars set
out in a part I of Schedule III of the Act.

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