Offer of sale of shares by certain members of company :

The section 28 of the Companies Act, 2013, provides that members whose shares are proposed to be offered to the public, shall collectively authorise the company, to take all actions in respect of offer of sale for and on their behalf .

(1) Members proposes to offer holding of shares to the public: Where certain members of a company propose, in consultation with the Board of Directors to offer, in accordance with the provisions of any law for the time being in force, whole or part of their holding of shares to the public, they may do so in accordance with such procedure as may be prescribed.

(2) Document of offer to sale be deemed as prospectus: Any document by which the offer of sale to the public is made shall, be deemed to be a prospectus issued by the company and all laws and rules made thereunder as to the contents of the prospectus and as to liability in respect of mis-statements in and omission from prospectus or otherwise relating to prospectus shall apply as if this is a prospectus issued by the company.

(3) Members collectively authorized the company to take action: The members, whether individuals or bodies corporate or both, whose shares are proposed to be offered to the public, shall collectively authorise the company, whose shares are offered for sale to the public, to take all actions in respect of offer of sale for and on their behalf and they shall reimburse the company all expenses incurred by it on this matter.