A company that shall not vary in the terms of contract mentioned with in prospectus except subject to approval, or except subject, to an authority given by the corporate and generally meeting by the way of SPECIAL RESOLUTION:
Details, as could also be prescribed, of the notice in respect of such resolution to shareholders, shall even be published within the newspapers (one in English and one in vernacular language) within the city where the registered office of the corporate is situated indicating clearly the justification for such variation Company shall not use any amount raised by it through prospectus for purchasing , trading or otherwise dealing in equity shares of the other listed company.
Dissenting to shareholders, shall tend to an exit offer by the promoter or controlling to shareholders at such to an exit price, as could also specified by Securities and Exchange Board by making the regulations during this behalf.
COMMENT: VARIATION IN TERMS OF CONTRACTS mentioned within the PROSPECTUS OR OBJECTS that PROSPECTUS WAS ISSUED
The company shall not vary the terms of contracts mentioned within the prospectus or objects that the prospectus was issued except by passing a special resolution through postal ballot and therefore the notice of the proposed special resolution shall contain the subsequent particulars, namely:-
- The first purpose or object of the Issue;
- The entire money raised;
- The cash utilised for the objects of the corporate stated within the prospectus;
- The extent of accomplishment of proposed objects(that is one-half , sixty percent, etc;
- The unutilised amount out of the cash so raised through prospectus,
- The particulars of the proposed variation within the terms of contracts mentioned within the prospectus or objects that prospectus was issued;
- The rationale and justification for seeking variation;
- The proposed deadline within which the proposed varied objects would be achieved;
- The clause-wise details as laid out in sub-rule (3) of rule 3 as was required with reference to the originally proposed objects of the issue;
- The danger factors concerning the new objects; and
- The opposite relevant information which is important for the members to require an informed decision on the proposed resolution
(2) The advertisement of notice for getting resolution that passed for varying into terms of any contract that is being mentioned with in the prospectus or any altering to the objects that the prospectus was issued, shall to be in Form PAS 1, Such advertisement shall also be published simultaneously with the dispatch of Postal Ballot Notices to an shareholders.
THE NOTICE SHALL even be PLACED ON THE WEB-SITE OF the corporate , IF ANY.
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