Form and contents of a prospectus. A prospectus gives a picture of the companys intended activities and position.

It provides all the necessary and material particulars about given company. The following provisions of he act must be observed in the preparation of the prospectus. a) Section 43 a copy of the prospectus must be delivered to the register of

companies and must be signed by every person named therein as a director or proposed director. b) Section39 every prospectus must be dated; and the date unless the contrary is proved, is taken to be the date of publication of the prospectus. It is advisable to insert a date two or three days later than actual date. c) Section 40 (1) every prospectus issued must include the matters specified in part 1 of the third schedule to the act and set out the reports specified in part 11 of that schedule. As per third schedule to the act the prospectus must contain the following: 1. The number of founders or management or deferred shares if any and the nature and extent of the interest of the holders in the property and the profits of the company. 2. The minimum shares a director can have and the remuneration of directors. 3. Names, occupation and postal addresses of the directors. 4. Where shares are offered to the public for subscription, particulars as to; a) Minimum amount that must be raised by the issue of those shares to provide funds for the following; i) The purchase price of property purchased or to be purchased,

which is to be defrayed in whole of the issue. ii) Preliminary expenses payable by the company and any

commission so payable to any person in consideration of his agreeing to procure subscription for any shares in the company. iii) Repayment of any moneys borrowed by the company without

use the issue proceeds and sources out of which amounts are to be provided. 5. The time of the opening of the subscription lists.

6. the amount payable on applications and allotment on each share. In the case of second or subsequent offer, the amount offered for subscription on each previous allotment made within the two proceeding years, the amount paid for the allotted shares. 7. The number, description and amount of any shares in or debentures of the

company which any person has, or is entitled to be given, an option to subscribe for; together with the following particulars of the option: a) The period during which it is exercisable. b) The prices to be paid for shares or debentures subscribed for under it. c) Consideration (if any) given or to be given for it for the right to it. d) The names and postal address of the persons to whom it or the right to it was given. 8. The number and amount of shares and debentures issued or agreed to be

issued with the two preceding years as fully or partly paid otherwise than in cash and the extent to which they are paid up. 9. (i) In respect of any property to which this paragraph applies; a) the names and postal addresses of the renders. b) The amounts payable in cash, shares or debentures to the vendor and where there are many vendors amount payable to each vendor. c) Short particulars of any transaction relating to the property completed within the two preceding years in which any vendor of the property to the company was at the time of the transaction, a promoter or a director or proposed director of the company had any interest direct or indirect. (ii) The property to which this paragraph applies is property purchased or by the company or proposed so to be purchased, which is to be paid for wholly or partly out of the proceeds of the issue offered for subscription by the prospectus or the purchase of which has not been completed at the date of the issue of the prospectus, other than property: a) The contract for the purchase whereof was entered in to the ordinary course of the companys business, the contract not being made i n contemplation of the issue nor the issue in consequence of the contract.

b) As respects which the amount of the purchase money is not material. 10. The amounts, if any, payable as purchase money in cash, shares or debentures for any property referred to in 9 above specifically the amount of goodwill.