difference between prospectus and statement in lieu of prospectus
Solution:
A prospectus is a document or a publication by, or on behalf of, a corporation containing information on the character, nature, and purpose of an issue of shares, debentures, or other corporate securities that extends an invitation to the public to purchase the securities. On the other hand, when the public company raise the capital privately implying issue and allotment of shares to a selected group of persons i.e shares may be offered to the friends and relatives of the directors of the company or to a small group of investors and institutional investors through some agency ( usually a merchant bank or a financial institution) .In this case, there is no need to invite public or issue a prospectus. But a statement in lieu of prospectus is filed by the company with the registrar of companies.
A prospectus is a document or a publication by, or on behalf of, a corporation containing information on the character, nature, and purpose of an issue of shares, debentures, or other corporate securities that extends an invitation to the public to purchase the securities. On the other hand, when the public company raise the capital privately implying issue and allotment of shares to a selected group of persons i.e shares may be offered to the friends and relatives of the directors of the company or to a small group of investors and institutional investors through some agency ( usually a merchant bank or a financial institution) .In this case, there is no need to invite public or issue a prospectus. But a statement in lieu of prospectus is filed by the company with the registrar of companies.