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    Question

    When publishing an advertisement for a prospectus of a company, which of the following requirements must be specified according to the Companies Act?

    A The advertisement must include a summary of the company’s financial performance over the past three years, details of the board of directors, and the total amount of capital raised through previous issues Correct Answer Incorrect Answer
    B The advertisement should specify the company’s memorandum contents regarding the objects, liability of members, share capital amount, names of the memorandum signatories, and the shares subscribed by them, but it can omit the capital structure Correct Answer Incorrect Answer
    C The advertisement must disclose the contents of the memorandum related to the company's objects, the liability of members, share capital amount, names of the signatories to the memorandum, the number of shares they subscribed for, and the capital structure Correct Answer Incorrect Answer
    D It is required to mention the company’s memorandum details, including its objects and capital structure, but not the liability of members or the names of signatories and their shares Correct Answer Incorrect Answer
    E The advertisement must include details about the company’s financial projections and future investment plans, but it is not necessary to specify the contents of the memorandum or capital structure Correct Answer Incorrect Answer

    Solution

    Section 30. Advertisement of prospectus: 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.

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