How to write the prospectus of a Company?

Answer 1

Prospectus of a company is a statutory document prepared and floated to make available minimum common information about the company, its affairs, funds related matters and other aspects - for one and all, prior to the public issue of a public limited company.

About writing a prospectus, it is guided by the provisions of the Companies Act, 1956 (Applicable in India) and contains minimum of those information as prescribed under the provisions of the Act and rules made thereunder. For wise reference, you should refer to the relevant provisions of the Companies Act, 1956 as a small mistake in preparing this document may cost heavens to any company.

Answer 2

Prospectus gives a realistic picture of the Company so that the investors who go through it are not mislead about the Company in case you are going for a Public Issue. All the facts and figures depicted in the Prospectus should be verifiable and you should have proper records to prove the figures. If a prospectus is written with insufficient care, you are accountable to the investors. Better get proper guidelines from competent authorities and professionals before you venture into it.

Answer 3

Prospectus is issued by a company at the time of Public Issue. A specimen of the Prospectus is available on page 939 of a Book titled Guide to Company Law Procedures VOl. 3. by Bhandari Please go thru the specimen and write prospectus of ur Company. U can also approach any stock exchange or Registrars to Public Issue they will also have a copy of the prospectus of the public issue of any company handled by them. All the best to u.