Companies Act, 1973 (Act No. 61 of 1973)Chapter VI: Offering of Shares and ProspectusProspectus157. Advertisement as to prospectus |
| 1) | Every newspaper or other advertisement in any format, including electronic format, offering or calling attention to an offer or intended offer of shares of a company to the public shall be deemed to be a prospectus by the person responsible for publishing or disseminating the advertisement (and all enactments and rules of law as to the contents of prospectuses and as to the liability in respect of statement in and omissions from prospectuses or otherwise relating to prospectuses shall apply and have effect accordingly), unless it contains no more information than the following: |
| a) | the number and description of the shares concerned; |
| b) | the name and date of registration of the company; |
| c) | the general nature of the main business or proposed main business actually carried on or to be carried on by the company; |
| d) | the names and addresses of the directors; |
| e) | the places at and times during which copies of the prospectuses may be obtained. |
| f) | where all the shares which are the subject of an offer are intended to be offered only to the members of a company or debenture holders, as the case may be, with or without the right to renounce in favour of other persons- |
| i) | the issue price of such shares; |
| ii) | the ratio in which such shares will be offered to the members or debenture holders entitled to accept the offer; and |
| iii) | the last day on which members or debenture holders must register as such in order to be entitled to receive the offer; |
| g) | the last day for subscribing. |
| 2) | No statement that, or to the effect that, the said advertisement is not a prospectus shall prevent the operation of this section. |