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Accordingly, a private company has no power to issue prospectus. Only a public company has power and privilege to issue prospectus to public for subscription of shares in or debentures of the company or for inviting public deposits. If a public company not able to raise funds from its own resources and does not issue a prospectus with reference to its formation then it has to file a statement in lieu of prospectus with the concerned Registrar of Companies. There must be an invitation to the public. The invitation must relate to securities. Part I of Schedule III and.
Part Il of that Schedule, setting out the reports specified therein, and the said Parts I and II shall have effect subject to the provisions contained in Part III of that Schedule. If a company acts in contravention of this sub-section. Shall be punishable with fine which may extend to ten thousand rupees. Prospectus is a bulky document and it is not economically feasible to supply full-fledged prospectus to the prospective investors. Therefore, as a cost saving measure, provision has been made to issue prospectus in abridged form.
Abridged Prospectus’ is a condensed prospectus, reduced prospectus. Abbreviated prospectus or shortened prospectus. Thus, it means a prospectus in brief where the company necd not provide information in the prospectus in detail under several sub-headings as required by the Schedule II, but, the information is given in condensed form. Abridged Prospectus’ means a memorandum containing such salient features or a prospectus as may be prescribed.
Such memorandum is the abridged form of prospectus. Also, Barclays will understand the message that is being given verbally even more clear because they’ll understand the body language of the person that is giving the message. Another disadvantage of verbal communication is that it is harder to communicate around the world. These apply to Barclays because Barclays has to make sure that there verbal communication towards customers or employees are made clear meaning that they would have to outcome the disadvantage. Barclays would have to come up with a solution in order to ease verbal communication around the world.