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john sanj (student of foundation) (131 Points)

28 April 2010

what is statement in lieu of prospectus?

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Jagruti (CS) (Service) (1953 Points)
Replied 28 April 2010

It is also required to be file as per Schedule IV in case of conversion of Pvt. Commpany into public Company

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(Guest)

In futherance of Jagruti (CS)'s answer. It is required to file only if the conversion takes place within 6 months of incorporation.

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CA Ravi Sisodia (CA,CS,CMA) (32226 Points)
Replied 28 April 2010

A statement in lieu of prospectus is filed by a Company before a Registrar, if it wants to allot shares without taking money from the public i.e it does not invite public to subscribe for shares. This is necessary before the company is able to allot shares to any person (typically closely held companies, though listed as public companies).

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Pradip Narsingani (Income Tax & GST Consultant/ CA-Final) (572 Points)
Replied 29 April 2010

A statement in lieu of prospectus.According to the companies' ordinance if a public company is not issuing a prospectus on its formation, it then must file a statement in lieu of prospectus with the registrar of the companies in other words A statement in lieu of prospectus is filed by a Company before a Registrar, if it wants to allot shares without taking money from the public i.e it does not invite public to subscribe for shares. This is necessary before the company is able to allot shares to any person

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