The Tax Publishers2. General provisions as to prospectus

(a) A prospectus being a document, must be in writing. An oral invitation for subscription or purchase of any shares in or debentures of a company does not constitute a prospectus. An advertisement in television or film is not a prospectus.

(b) The prospectus must invite deposits or offers from the public. Public does not include existing members and debentureholders, if any, of a company.

(c) The sine qua non for a document to be prospectus is that it must invite or make an offer to public for subscription or purchase of shares in or debentures of the company.

(d) An offer of shares confined to directors, existing members and friends is not an offer to public.

(e) An offer of shares made by a private company to selective persons cannot be said to be an invitation to buy shares to public.

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