Companies Act India

Ans: In the case of Pramatha Nath Sanyal C. Kali kumar Dutt, the company gave an advertisement about the remaining shares of company in newspaper. The court held that the advertisement of newspaper will also be considered as prospectus. The company will have to mention about itself in the prospectus i.e. working areas of company, litigation on company if any,  etc.

Ans:  The prospectus is a document and it can be a circular or advertisement or anything that is issued to raise funds from public at large and not from existing shareholders is known as prospectus.

Ans: Prospectus is an invitation to offer and not a general offer. First of all,  the prospectus is filed in SEBI by public company. It is that public company of which public issue i.e., IPO or FPO is about to come. A Follow-On Public Offer (FPO) is a type of public offering in which a company which is already listed on the stock exchange issues new shares of its stock to the public. The companies that have already raised funds through IPOs by issuing their shares for the first time can also issue additional shares through FPOs.

Ans: A prospectus is a document through which a public company raises the fund. Prospectus is mentioned under section 2(70) of Companies Act, 2013. Public company is mentioned under section 2(71) of Companies Act,  2013. The promoters of company have significant role in creating the prospectus. Promoters are mentioned under section 2(69) of Companies Act, 2013. If the public company would like to raise fund , the public company can raise the fund through prospectus.

Ans: The voting right will be in the percentage of his shares in the paid-up equity share capital of the company. Therefore, if a shareholder owns 51% of the company's stake, he will have the right to exercise majority control over the company. Section 47 of the Company's Act 2013 bestows voting rights to the shareholders.

Ans : To ameliorate corporate governance and investment protection , the implementation of companies act, 2013 was a milestone in corporate reforms of India.  But there are also some difficulties and some amendments were required and thus pursuant to these repesentations, the ministry of corporate affairs constituted a company law committee for addressing these concerns.

Ans: The minimum number of partners are two. The maximum number of partners are 50. Companies Act, 2013( Section 464), Companies Miscellaneous) Rules, 2014( Rule 10) . All terms can be decided by the partners,  and in absence of any specific term the relevant sections of the Act will apply. Each partner is the agent of other partner and this relationship is called Principal Agent Relationship ( Joint and Several Liability).