Companies Act • Official Statutory Text & Practice Guide
Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 2013
Section 30 of Companies Act: Corporate Governance & Statutory Compliance
Official Bare Act Text
Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary
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 to the memorandum and the number of shares subscribed for by them, and its capital structure.
Statutory Defined Terms in this Section:(Click any term for official legal definition)
Section 30 regulates the contents and publication of advertisements of a prospectus, mandating that any public advertisement must specify the core corporate objects, member liability, and capital structure.
Statutory Advertisement Requisites: Every advertisement of a prospectus published through print, television, or digital media must specify the contents of the memorandum regarding company objects, liability of members, and share capital.
Names of Signatories: The advertisement must state the names of the signatories to the memorandum and the number of shares subscribed by them.
Inspection of Full Prospectus: The advertisement must clearly indicate where a copy of the complete prospectus can be inspected and obtained by the investing public.
Key Landmark Precedents:
Sahara India Real Estate Corp. Ltd. v. SEBI, (2012) 10 SCC 603: The Supreme Court held that public advertisements and solicitation brochures for corporate securities are subject to strict statutory scrutiny to prevent misleading marketing slogans.
SEBI v. Prebon Yamane (India) Ltd., (2015) 130 CLA 285 (SAT): Affirmed that summary advertisements of public offers must strictly comply with statutory disclosures, and omissions of material risks expose issuers to marketing bans.
Courtroom Practice & Strategic Litigation Guidance:
Prior to releasing print or digital ads for an issue of securities, corporate compliance counsel must review marketing copy against Section 30 and SEBI (ICDR) Regulations, confirming that statutory object summaries and capital details are prominently legibly displayed.
Legal Commentary & Landmark Judgments: Section 30
Section 30 regulates the contents and publication of advertisements of a prospectus, mandating that any public advertisement must specify the core corporate objects, member liability, and capital structure.
Prior to releasing print or digital ads for an issue of securities, corporate compliance counsel must review marketing copy against Section 30 and SEBI (ICDR) Regulations, confirming that statutory object summaries and capital details are prominently legibly displayed.