CAF-7 Ch-6 Prospectus and commencement of business

CAF-7 | Ch-6 |Prospectus and Commencement of Business

CAF-7 Ch-6 Prospectus and commencement of business

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CAF-7 Company Law Quiz offered for the ICAP CA students.

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Question 1 of 20

1. Question
1 points

Category: CAF7
A single offering document allowing companies to make multiple offerings as discl1osed in the offering document is known as
- Sale prospectus
- Shelf-prospectus
- Single Prospectus
- Multiple Prospectus
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Question 2 of 20

2. Question
1 points

Category: CAF7
A supplement to the prospectus invites the general public for a subscription to earlier offered security(ies). The supplement to the prospectus contains
- New prospectus
- Shelf-prospectus
- Updated disclosures
- None of the above
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Question 3 of 20

3. Question
1 points

Category: CAF7
The prospectus is issued, published or circulated with the approval of
- The members
- The board of directors
- The Commission
- The Auditors
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Question 4 of 20

4. Question
1 points

Category: CAF7
The prospectus in its full text or in such abridged form shall be published at least in
- One Urdu magazine
- One Urdu or one English fortnight newspaper
- One Urdu and one English magazine
- One Urdu and one English daily newspaper
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Question 5 of 20

5. Question
1 points

Category: CAF7
A prospectus issued shall be made available, free of charge,
- At the registered office of the issuer
- With all the bankers to the issue
- With the concerned share registrar
- All the above
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Question 6 of 20

6. Question
1 points

Category: CAF7
The prospectus along with the subscription form, from the date of its publication in the newspapers, till the closing of the subscription, shall also be uploaded
- On the website of the securities exchange
- On the website of the SECP
- On the website of the Issuer
- On the website of the concerned Bank
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Question 7 of 20

7. Question
1 points

Category: CAF7
Prospectus means any document, notice, circular, material, publication or other invitation offerings
- To the general public
- To the board of directors
- Only to the existing shareholders
- Only to the existing customers
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Question 8 of 20

8. Question
1 points

Category: CAF7
Although approval from the Commission is required for issue, publication or circulation of the prospectus, there are instances where prior approval is not necessary such instances include
- Securities offered by the State Bank of Pakistan
- Where securities are offered in connection with a private offering
- Where the securities are shares and are offered as bonus shares
- All of the above
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Question 9 of 20

9. Question
1 points

Category: CAF7
A prospectus approved by the Commission shall be valid for a period of
- 30 days from the date of such approval
- 60 days from the date of such approval
- 90 days from the date of such approval
- 120 days from the date of such approval
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Question 10 of 20

10. Question
1 points

Category: CAF7
A prospectus shall not contain a statement purporting to be made by an expert unless the expert is a person
- Who is not or has not been engaged or interested in the formation of the company
- Who is or has been engaged or interested in the formation of the company
- Who is engaged or interested in the promotion of the company
- Who is engaged or interested in the management of the company
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Question 11 of 20

11. Question
1 points

Category: CAF7
If a public company opts not to issue shares to the general public initially and start the business in such a case Company would be required to file with the registrar
- Statement of affairs
- Statement of capital
- Statement in lieu of prospectus
- Statement in lieu of advertisement
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Question 12 of 20

12. Question
1 points

Category: CAF7
The prospectus is a formal document and needs
- Approval from the board and clearance from the auditors.
- Approval from the members and clearance from the creditors
- Approval from the Commission and clearance from the securities exchange
- Approval from the court and clearance from the registrar
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Question 13 of 20

13. Question
1 points

Category: CAF7
Once issued and securities allotted under a prospectus
- It shall be sent to the registrar
- It shall be sent to the securities exchange
- Its existence will end
- Its existence will continue till the next AGM
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Question 14 of 20

14. Question
1 points

Category: CAF7
A prospectus is required to be submitted to the SECP for approval at least
- 14 days before the proposed date of publication in the newspapers
- 21 days before the proposed date of publication in the newspapers
- 30 days before the proposed date of publication in the newspapers
- None of the above is correct
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Question 15 of 20

15. Question
1 points

Category: CAF7
The minimum time gap between the date of publication of a prospectus and the date of subscription shall be
- 14 days
- 21 days
- 30 days
- 7 days
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Question 16 of 20

16. Question
1 points

Category: CAF7
For obtaining the certificate of commencement of business a public company has to meet certain requirements. Choose the incorrect one from following
- The company should have allotted shares against cash equal to the amount of the minimum subscription
- The directors should have paid in cash to the company full amount on each of the shares taken or contracted to be taken
- The members should have paid in cash to the company full amount on each of the shares taken or contracted to be taken
- No money is or may become liable to be repaid to applicants for any shares
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Question 17 of 20

17. Question
1 points

Category: CAF7
Before being permitted to trade, a public company must have:
- Obtained a certificate of incorporation only
- Been listed on the securities exchange
- Issued a prospectus
- Obtained a commencement of business certificate and certificate of incorporation
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Question 18 of 20

18. Question
1 points

Category: CAF7
Which of the following shall be considered conclusive evidence on the basis of which a public company shall be entitled to start its operations? (a) (b) (c) (d)
- Received full amount from every director on each of the shares taken or contracted to be taken by him and for which he is liable to pay in cash.
- Submitted the duly verified declaration along with other documents duly verified by CEO and the registrar has accepted & registered the same.
- Allotted shares that were held subject to payment of the whole amount thereof in cash equivalent to minimum subscription.
- Repaid the money to the applicants for any shares which have been offered for public subscription.
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Question 19 of 20

19. Question
1 points

Category: CAF7
A prospectus is required to be duly signed by:
- the chief executive and a director c) Every Contract | a Contract
- every person who is named therein as a director or proposed director Notice of meeting
- the chief executive, a director and the chief financial officer
- every director including the chief executive
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Question 20 of 20

20. Question
1 points

Category: CAF7
Minimum subscription is:
- the total authorised share capital of a company as stated in the prospectus
- the whole amount of the share capital other than that issued or agreed to be issued as paid-up otherwise than in cash, if no amount of minimum subscription is so fixed
- the whole amount of the subscription received from applicants if no amount of minimum subscription is so fixed
- the amount to be generated from the public for which prospectus is issued
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