CA Intermediate · Corporate and Other Laws · Prospectus and Allotment of Securities
Mehta Infra Ltd, a public company, wishes to issue a prospectus in which it names an expert who has given a written opinion on the company's mineral reserves. Which statement correctly reflects the requirement regarding the expert's consent under the Companies Act, 2013?
A prospectus may carry an expert's statement only if the expert has given written consent to its issue and has not withdrawn that consent before a copy is delivered to the Registrar, and the prospectus must state that such consent was given. Oral consent or a mere summary is insufficient.
- AThe expert's consent is needed only if the expert is a shareholder of the company
- BNo consent is required if the expert's report is merely summarised
- CThe prospectus can include the expert's statement only if the expert has given written consent to its issue and has not withdrawn it before delivery of the copy to the Registrar, and the consent is stated in the prospectusCorrect
- DThe expert's oral consent suffices if recorded in the minutes
Explanation
A prospectus can include a statement made by an expert only if the expert is not connected with the formation or management of the company, has given written consent to the issue, and has not withdrawn it before delivery of the prospectus copy to the Registrar. The prospectus must also state that the consent was given. Oral consent or a mere summary does not satisfy this requirement.
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