Prospectus Directive
The definition given by Section 43(2) of the companies Act 1963 of a prospectus is “any prospectus, notice, circular, advertisement or other invitation, offering to the public for subscription or purchase any share or debentures of a company.” Ussher observes that the primary objective of the initiave is shareholder protection and the “chief weapon” available to the authorities in ensuring this is the compulsory disclosure of material facts upon the occasion of any invitation to member of the public to subscribe for shares of debentures in a company. This as noted by Cahill in Corporate Finance Law, is known as an offer to the public.
Traditionally judiciary looked to Section 61 of the 1963 Act for guidance as to what constituted an offer to the public. However, Eaton in “Implementing the Prospectus Directive” observes that this was more helpful in providing that certain offers were not “offers to the public.” Similarly, Cahill comments that it does not succeed in......
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