GLOSSARY

PROSPECTUS

12 May 2016 By PDSNET

This is a requirement of the Companies Act (71 of 2008) for every offer of shares made to the public. Section 108 of the Act requires that a company cannot allot shares or accept money for those shares unless there is a prospectus and that the applicant was in possession of that prospectus at the time of making the application. The purpose of the prospectus is to ensure that members of the public wishing to purchase the shares on offer are aware of certain key information concerning the company and its directors.

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