New 55% Off on All Courses - Enroll Now! Click Here

    Question

    As per the provisions of the deemed prospectus as

    contained in the Companies Act which of the following is the conditions that evidence that an allotment of, or an agreement to allot, securities was made with a view to the securities being offered for sale to the public?
    A An allotment of, or an agreement to allot, securities was made with a view to the securities being offered for sale to the public Correct Answer Incorrect Answer
    B At the date when the offer was made, the whole consideration to be received by the company in respect of the securities had not been received by it Correct Answer Incorrect Answer
    C Both a & b Correct Answer Incorrect Answer
    D Either a or b Correct Answer Incorrect Answer

    Solution

    Section 25 Document containing offer of securities for sale to be deemed prospectus- (2) For the purposes of this Act, it shall, unless the contrary is proved, be evidence that an allotment of, or an agreement to allot, securities was made with a view to the securities being offered for sale to the public if it is shown— (a) that an offer of the securities or of any of them for sale to the public was made within six months after the allotment or agreement to allot; or (b) that at the date when the offer was made, the whole consideration to be received by the company in respect of the securities had not been received by it.

    Practice Next