62. Restriction on varying contracts referred to in prospectus, etc.

Question 1

62. Restriction on varying contracts referred to in prospectus, etc.

Answer 1

General overview
[62.01] It is very common for the prospectus or statement in lieu of prospectus to disclose the contracts which the promoters have made on behalf of the company prior to the issue of shares by the company. In case of any variation of the terms of such contracts, s 62 provides that such variation shall not be carried out before the statutory meeting unless it is made subject to the approval of the statutory meeting.

Question 2

Restrictions on varying contracts

Answer 2

[62.02] Only a public company limited by shares need to hold a statutory meeting and furnish a statutory report under s 174. Section 62 provides that a company shall not carry out a variation of a contract referred to in the prospectus or the statement in lieu of prospectus unless the variation is made subject to the approval of the statutory meeting.

Question 3

Statutory meeting

Answer 3

[62.03] It is the beginning of life of a public limited company. It has to be held within a period of one to three months after the date at which the company is entitled to commence business: s 174.