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Unit 7: Prospectus

7. State the circumstances when the Registrar must refuse the registration of a prospectus. Notes
8. Explain the nature and extent of liability of an expert in respect of a prospectus containing
a misstatement.

9. Explain the extent of civil and criminal liability for misstatements in the prospectus.
10. Who are liable for misstatements in a prospectus?
11. How does a prospectus differ from a statement in lieu of prospectus?
12. Explain the terms ‘underwriting’ and ‘underwriting commission’. State the conditions
which are to be fulfilled for the payment of underwriting commission.

Answers: Self Assessment

1. s.2 (36) 2. allotment of shares
3. under s.56 4. ‘public’
5. (a) 6. (c)
7. (a) 8. (c)

9. (d) 10. (c)
11. (a) 12. (d)
13. (d) 14. (a)
15. False 16. False
17. False 18. True

19. False
7.12 Further Readings

Books Aggarwal, Rohini (2003), “Student’s Guide to Mercantile and Commercial Laws,”
Taxmann’s, New Delhi.
Avtar Singh, Company Law, Eastern Publishers.

Begrail, Ashok K, Company Law, Vikas Publishing House, Delhi.
Kapoor, N.D, Company Law, Sultan Chand & Sons, New Delhi.
M.C. Kucchal ( 2002), “ Business Law”, Vikas Publishing House Pvt. Ltd, Delhi.
P.C. Tulsian (2002), “ Business Law”, Tata Mc. Graw Hill Pvt. Ltd, Delhi.

S S. Gulshan, Business Law, Excel Books, New Delhi, 2006.

Online links http://www.indialawinfo.com/bareacts/soga.html
www.en.wikipedia.org

www.webopedia.com

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