a company is 110t compulsory in the following cases

(i) A pirate company is not required to issue a prospectus.

(i i) Even a public company need not issue a prospectus if the promoters or direct )rs feel that they can mobilize resources through personal relationship

and contacts. In such cases, the company is required to file a statement called ‘Statement in lieu of Prospectus’ with the Registrar of Companies. [Sec
56 (3b)]

(iii) A public company. not having share capital. (iv) When shares are offered to underwriters under an underwriting agreement [Sec. 56 (3) (a)].

(v) Where the shares debentures c)re offered to the existing members debenture-holders [Sec. 56 (5) (a)].

(vi) Where the shares or debentures are in all respects, uniform with shares debentures previously issued and dealt in unquoted on a recognized stock exchange.

State the remedies :”,ail able to a person who has been induced to tal{e shares’ by miss-statement in a Prospectus, specifying the conditions under which and the Iverson’s against whom such remedies are avertable.

What remedies are available to the allotted of shares against the company for miss-statement in a I)prospectus?