Advertisement of prospectus
📚 Law Minded summary
A short rule about advertising.
Whenever a prospectus is advertised anywhere, the advertisement itself must carry the company's objects, the liability of its members, the amount of share capital, and the names of the signatories.
The point is that a person should not be drawn in by a headline promise without the basic facts alongside it.
Where an advertisement of any prospectus of a company is published in any manner, it shall be necessary to specify therein the contents of its memorandum as regards the objects, the liability of members and the amount of share capital of the company, and the names of the signatories to the memorandum and the number of shares subscribed for by them, and its capital structure.
All sections in Chapter III — Prospectus and Allotment of Securities