Prospectus and allotment of security

Corporate & Other Laws

To include experts statement The experts should be engaged or interested in formation or promotion or management of the company Or he should not be engaged with that Who can give experts statement

Sruthi sruthi

CA Final

★ 640

09-Mar-23 21:12

556

Answers (4)

The statement of An expert who is engaged or interested in the formation of the company CANNOT be included in the prospectus

Neha Baliga

CA Inter

★ 16K+

09-Mar-23 23:47

He should not be engaged in the formation

Neha Baliga

CA Inter

★ 16K+

09-Mar-23 23:47

According to Section 26 of Companies Act , 2013 , A prospectus issed by Company MAY contain a experts statement. Conditions for such are :- i.) Written Consent of such expert shall be obtained. ii.) He shall possess any professional qualification like CA , CS , CMA , advocate, etc. iii.) Such written consent shall not be withdrawn. iv.) Such person SHALL NOT be in management, incorporation or affairs of Company All above conditions shall be Commutatively fulfilled. Hence , a person in point iv.) Above , shall not be eligible expert to include his statement in prospectus. Hope this will help. You may refer Section 26 to get details .

Varun Mulay

CA Final

★ 39K+

10-Mar-23 00:22

Expert statement is included a) if the person(i.e the expert creating such statement) is not engaged in formation, promotion or management of the company. b)has given written consent & not withdrawn such consent ( before delivery of prospectus to ROC)

dheeraj hembram

CA Inter

★ 240

19-Mar-23 08:16