Companies Act, 2008 (Act No. 71 of 2008)RegulationsCompanies Regulations, 2011Chapter 4 : Offerings of Company SecuritiesPart C : Items required to be included in a Prospectus74. Statement as to adequacy of capital |
| (1) | In this regulation, "issued capital of the company" includes the minimum amount to be raised in pursuance of the offer. |
| (2) | Section 3, Paragraph 1 of every prospectus must set out either— |
| (a) | a statement by the directors of the company that, in their opinion, the issued capital of the company is adequate for the purposes of the business of the company, and of any subsidiary of the company, for at least 12 months after the date of the prospectus; or |
| (b) | if the directors of the company are of the opinion that the issued capital of the company is inadequate for the purposes contemplated in paragraph (a), a statement by them setting out— |
| (i) | the extent of the inadequacy; and |
| (ii) | the manner in which, and the sources from which, the company and any subsidiary are financed, or are proposed to be financed. |