Login : Advocate | Client
Home Post Your Case My Account Law College Law Library

Report No. 143

4. Form and particulars of advertisements.-

(1) Every company intending to invite or allowing or causing any other person to invite deposits shall issues an advertisement for the purpose in a leading English newspaper and in one vernacular newspaper circulating in the State in which the registered office of the company is situated.

(2) No company shall issue or allow any other person to issue or cause to be issued on its behalf, any advertisement, inviting deposits, unless such advertisement is issued on the authority and in the name of the Board of Directors of the company and contains a reference to the conditions subject to which deposits shall be accepted by the company, the date on which the said Board of Directors has approved the text of advertisement and the following information namely:-

(a) name of the company;

(b) the date of the incorporation of the company;

(c) the business carried on by the company and its subsidiaries with the details of branches or units, if any;

(d) brief particulars of the management of the company;

(e) names, addresses and occupation of the Director;

(f) profits of the company, before and after making provision for tax, for the three financial years immediately preceding the date of advertisement;

(g) dividends declared by the company in respect of said years;

(h) a summarised financial position of the company as in the two audited balance sheets immediately preceding the date of advertisement in the following form, namely:

(3) An advertisement issued in accordance with this rule shall be valid until the expiry of six months from the date of closure of the financial year in which it is issued or until the date on which the balance sheet is laid before the company in general meeting, or, where the Annual General Meeting for any year has not been held, the latest day on which that meeting should have been held in accordance with the provisions of the Act, whichever is earlier, and a fresh advertisement shall be made, in each succeeding financial year, for inviting deposits during that financial year.

(4) No advertisement shall be issued by or on behalf of a company unless on or before the date of its issue, there has been delivered to the Registrar for registration a copy thereof signed by a majority of the Directors on the Board of Directors of the company as constituted at the time the Board approved the advertisement or their agents, duly authorised by them in writing.

Explanation.-For the purpose of this rule, the date of issue of the newspaper in which the advertisement appears shall be taken as the date of issue of the advertisement.

Legislative Safeguards for protecting the Small Depositors from Exploitation Back

Client Area | Advocate Area | Blogs | About Us | User Agreement | Privacy Policy | Advertise | Media Coverage | Contact Us | Site Map
powered and driven by neosys