Instead of the prospectus Statement

Record statement instead

a. Subscription of the shares

If a aggregation does not wish to affair a announcement to the accessible for cable of the shares, this account is appropriate to be issued to the accessible for all-important information. It accept to be active by every being alleged in it as administrator or by his abettor accustomed in writing: The attributes of the advice of this affidavit is added or beneath agnate to that accustomed in the prospectus. A archetype of this account accept to be filed with agent aural assigned time. This accouterment does not administer to clandestine company.

b. Allocation Certificate

A allocation affidavit is a affidavit issued beneath the accepted allowance of the aggregation and it states the admeasurement of the absorption of its holder in the company's capital. This affidavit is usually accustomed chargeless of allegation to every affiliate whose name is entered in the annals of members. It indicates the name, abode and added particulars of the holder, the bulk of shares and the bulk paid up on allocation captivated by him.

c. Allocation warrant

This affidavit is issued beneath the accepted allowance of the aggregation in account of absolutely paid up shares. It is a negotiable apparatus which is communicable by simple delivery. It accept to be stamped- according to the bazaar bulk of the shares. It may be issued with- coupons absorbed by agency of which the holder is advantaged to affirmation and dividend.

d. Accepted seal

Every aggregation accept to accept a accepted allowance with its registered name engraved there in clear letters. It acts as the official signature of the company. Regulations administering the use and aegis of the allowance are laid down in the Articles of Association. It is about to be acclimated by the ascendancy of the directors. It is not all-important to use it on all documents. But the allowance is appropriate on abstracts if accepted by the aggregation Ordinance or Articles of Association i.e. debentures, allocation affidavit or allocation warrant.

e. Dividend

A allocation is that allocation of the company's net accumulation which is broadcast a allotment of the shareholders in admeasurement to the bulk of shares holding. It is aboriginal declared at the Board of Admiral Affair which is assuredly accustomed by shareholders at the anniversary accepted meeting. Until a allocation is declared, no shareholders can affirmation any acknowledgment on the basic he has invested in the: company. It accept to be paid out of the profits of the company. The admiral are empowered to alteration some allocation of profits to assets armamentarium afore advising a dividend.

f. Minimum subscription

It is the minimum bulk of shares subscribed by accessible afore the admiral can advance to allotment. The bulk of minimum cable anchored by the Memorandum or the Articles and alleged in the announcement beneath the branch i.e. basic expenses, underwriting commission, alive basic and claim of loans. If no such bulk is anchored again the accomplished of the basic offered for cable accept to be subscribed by the public. This is advised to ensure that the aggregation will not arise the business afterwards able capital.

g. Transmission of shares

It signifies a change in buying of the balance through the operation of law in case of afterlife or defalcation of members. The appropriate of affiliate is automatically transferred to his acknowledged assembly afterwards his death. Similarly on acceptable bankrupt, a member's shares may be transferred to trustee by operation of law. The trustee must, however, prove to the aggregation that he is advantaged to accord with bankrupt's shares.

h. Underwriting

The being who takes accident to acquirement a defined bulk of the shares and debentures of a anew floated aggregation is accepted as underwriter. He receives a agency in barter of his casework which is alleged underwriting commission. So the act of auction allowance by specialized being in application of agency is alleged as underwriting. Sometimes underwritings does not wish to yield accomplished risk, he may alteration a allotment to sub advocate which is abiding by agency of contract.