Coconote
AI notes
AI voice & video notes
Export note
Try for free
Rapid Revision of CA Inter Law Chapter 3
Aug 30, 2024
Lecture Note on Rapid Revision of Chapter 3 - CA Inter Law
Introduction
Welcome to today's rapid revision.
We will summarize and complete the entire Chapter 3 in an effective way.
This revision is for May 24 and November 24 students.
Book Introduction
The book presents CA Inter Law concisely in 200 pages.
It provides a summary of the bare act language, forms, and sections.
Revision of Prospectus
Starts from Section 23 to 42.
Broadly divided into two parts:
Public Offer (Section 23-41)
Private Placement (Section 42)
Public and Private Company
Public Company:
Can do Public Offer, Private Placement, Bonus Issue, Right Issue.
Private Company:
Cannot give a Public Offer, only Private Placement or Right/Bonus Issue.
Overseas Direct Listing
Some companies are allowed to list directly abroad.
Other companies will have to issue GDRs.
Definition of Security and Prospectus
Security: Shares, Debentures, etc.
Prospectus: Any document soliciting money from the public.
Section 24
SEBI regulations apply when the company is in the process of listing.
Deemed Prospectus
Definition and impact of Deemed Prospectus.
When shares are allotted and sold to the public.
Section 26
What details should be in the Prospectus:
Must be dated and signed.
Reports and information as prescribed by SEBI should be included.
Information Memorandum
Associated with the Shelf Prospectus.
Information like Charges, Financial Changes, etc.
Section 29
Convert shares into Demat Form.
Demat is mandatory for Public Company.
Section 30
Include the fundamentals of MOA during the advertisement.
Section 31-35
Concepts of Shelf Prospectus and Red Herring Prospectus.
Penalties for Misleading Prospectus:
Section 34: Criminal Liability
Section 35: Civil Liability
Section 36-37
Penalties for Fraudulent Inducement.
Suit for Compensation in Case of Misleading Prospectus.
Section 39-40
Allotment rules and Conditions.
Application and permission required for Stock Exchange.
Underwriting Commission
Conditions and rules of Underwriting Commission.
Section 41
Introduction to Global Depository Receipts (GDR).
Section 42
Process and rules of Private Placement.
Maximum 200 people, for identified persons.
Important Points
No public invitation for Private Placement.
Start a new one only after completing or withdrawing the previous Private Placement.
Conclusion
This revision will assist in quick revision during exam time.
ЁЯУД
Full transcript