## Advertisement of Prospectus [Section 30]

When a prospectus is advertised in any manner, the advertisement must also specify the following contents of the company's Memorandum of Association:

The objects of the company.
Liability of members and the amount of share capital.
Names of signatories to the MOA.
Number of shares subscribed by each signatory.
The capital structure of the company.

> The purpose is to ensure that an investor seeing only the advertisement receives the same baseline MOA information as one reading the full prospectus.

Worked example

### Example 1

Q. XYZ Ltd. publishes a glossy newspaper advertisement for its IPO, mentioning only the price, expected listing date and broker contacts. Is this compliant with Section 30?

A. No. Section 30 mandates that the advertisement also specify the objects of the company, members' liability and share capital, signatories to the MOA, number of shares subscribed by them, and the capital structure. The advertisement is non-compliant.

⚠️ Common exam mistakes

Confusing advertisement of the prospectus (Section 30) with the prospectus itself — Section 30 imposes its own minimum MOA-disclosure list.
Omitting any one of the five MOA items in the advertisement.

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

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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