# Section 30 — Advertisement of Prospectus

## Requirement

When an advertisement of a company's prospectus is published in any manner (newspaper, TV, online, etc.), the advertisement must specify the contents of the company's Memorandum of Association as regards:

1. Objects of the company;

2. Liability of members and the amount of share capital;

3. Names of the signatories to the memorandum;

4. Number of shares subscribed for by the signatories; and

5. Capital structure of the company.

## Why?

An advertisement is often the first point of contact for an investor. Including these MOA fundamentals ensures investors get a snapshot of the company's constitutional framework before subscribing.

## Memory Aid — "O-LiSh-CC"

Objects
Liability of members + share capital amount
Signatories' names
Shares subscribed by signatories
Capital Constitution / structure

Worked example

### Example 1

Example: A company publishes a teaser advertisement of its upcoming IPO in a national daily but mentions only the issue size and price band. Is this sufficient?

Answer: No. Section 30 requires the advertisement to also disclose the MOA contents — objects, liability of members, share capital, names of signatories, shares subscribed by them, and capital structure.

⚠️ Common exam mistakes

Confusing advertisement requirements with the full prospectus requirements — Sec 30 is a focused MOA-disclosure rule.
Forgetting any of the five mandatory items in the advertisement.

Bare-Act text Section 30 · Companies Act, 2013 · click to expand

Section 30: Where an advertisement of any prospectus of a company is published in any manner, it shall be necessary to specify therein the contents of its memorandum as regards the objects, the liability of members and the amount of share capital of the company, and the names of the signatories and the number of shares subscribed for by them, and its capital structure.

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Advertisement of Prospectus (Sec 30)

Worked example

⚠️ Common exam mistakes