Statement in lieu of Prospectus
In most cases public companies invite general public to subscribe to the share capital of the company. However, in some cases they may arrange for it privately. In such a case they do not issue prospectus to invite the people. Hence, in accordance with the company law, they are required to submit to the registrar a statement in lieu of prospectus.
In other words companies, not issuing prospectus, should issue a statement instead. The contents of the statement have been described in the act. The statement must be submitted with the registrar three days before the allotment of shares or bonds.
It must be signed by each director, and should include all the information that should be given in the prospectus.