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    Question

    According to the provisions of the Companies Act related to issuance of securities on private placement, which of the following statements is correct?

    A Companies must use media, marketing, and distribution channels to inform the public about the issue Correct Answer Incorrect Answer
    B Companies are allowed to release public advertisements and use media channels to promote the securities they are issuing Correct Answer Incorrect Answer
    C No company is permitted to release public advertisements or use media, marketing, or distribution channels to inform the public at large about the issue Correct Answer Incorrect Answer
    D Companies can use distribution agents to inform the public but cannot release public advertisements about the securities issue Correct Answer Incorrect Answer
    E Companies may utilize media channels but must avoid using marketing agents to promote the securities issue to the public Correct Answer Incorrect Answer

    Solution

    Section 42. Offer or invitation for subscription of securities on private placement: (7) No company issuing securities under this section shall release any public advertisements or utilise any media, marketing or distribution channels or agents to inform the public at large about such an issue.

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