Page 2 - Lesson Note 9

2. Rights of each class of shareholders.

3. Procedure for making allotment of shares.

4. Procedure for issuing share certificates.

5. Procedure for forfeiture and reissue of forfeited shares.

6. Rules regarding casting of votes and proxy voting

7. Procedure for selection and removal of directors

8. Dividend declaration and payment related rules

9. Procedure for capital readjustment

10. Procedure regarding winding up of the company.

https://www.youtube.com/watch?v=AoDVahLvnV4

3. Prospectus:

Prospectus means any document which invites deposits from the public to purchase share or
debentures of a company.

Main contents of the Prospectus:

1. Company’s name and the address of its registered office.

2. The main object of the company

3. The number and classes of shares.

4. Qualification shares of the directors

5. The name and addresses of the directors, managing director or manager.

6. The minimum subscription which is 90% of the size of the issue.

7. The time of opening and closing of the subscription list.

8. The amt. payable on the application and allotment of each class of share.

9. Underwriters to the issue.

10. Merchant bankers to the issue.https://www.youtube.com/watch?v=yQANJb2J0Hw