Regarding material information in prospectus

A prospectus issued by a company contained a promise of subscripttttion of a substantial amount by some persons so as to introduce the public to subscribe. The plaintiff who was allotted 10 shares alleged misrepresentation. Decide.

The company has stated that the person has promised to subscribe and not already subscribed , this confuses me.

Replies (1)

It's a case of Misrepresentation ,since Inducing Public that some one(may be a person of Repute) has subscribed substantially  for the shares amounts to Misrepresentation........There's even a case law having same facts but I couldn't just recall the same since being in the P.E 2 syllabus........

Manish !

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 16 July 2026
CA Article

Pipara & Co. LLP.

Mumbai

CA Inter

View Details
Company
Featured 18 July 2026
CA Articleship

apricus india

Mumbai

CA Inter

View Details
Company
22 July 2026
Senior Chartered Accountant

SKSS

Patna

CA

View Details
Company
31 July 2026
Senior Accountant - Bunia, Democratic Republic of Congo

AD GLOBAL LTD

Mumbai

B.Com

View Details
Company
Featured 18 July 2026
Senior Manager- Finance & Accounts

apricus india

Ahmedabad

CA

View Details
Company
05 July 2026
Financial Controller

NovumLake Partners

Mumbai

CA

View Details
Company
14 July 2026
Senior Executive/ Manager

H S SHARMA AND CO

Pune

CA Final

View Details
Company
28 July 2026
Senior accountant

RJ Public School

Bengaluru

B.Com

View Details
Follow